Begbies Traynor has bought Midlands-based finance broker MAF Property, marking its fourth acquisition of the year
The London professional services firm will pay a maximum of £11.75m for MAF Property, with an initial cash payment of £3m, followed by the potential for an additional £8.75m subject to ‘delivering material growth’ in profits over the four years after the transaction completes.
Under the deal, the nationwide firm headquartered in South Normanton, Derbyshire, which was previously known as Midlands Asset Finance, will become part of the Begbies Traynor Group. All 46 employees and two directors will join Begbies.
MAF has sector expertise in construction, engineering, manufacturing, haulage, healthcare, agriculture, renewables, property finance, fleet management and vehicle leasing.
Ric Traynor, executive chairman of Begbies Traynor Group, said: ‘The acquisition of MAF is in line with our growth strategy and complements our existing, and expands the range of, our service lines.
‘MAF specialises in providing growth capital for investment and has developed excellent relationships with both clients and financial institutions over many years. As companies seek to bounce back from the pandemic, access to finance will be critical and going forward the MAF team will prove invaluable in increasing the support and advice we can provide to UK businesses.’
This is Begbies Traynor Group’s fourth acquisition in 2021 as the firm continues to focus on growth. The group’s strategy is to increase the scale and quality of its businesses both organically and through value-accretive acquisitions to both complement and diversify its range of service offerings.
The acquisition will also hope to deepen the group’s existing relationships with banks and other lenders.
In its financial year ended 31 December 2020, MAF reported revenue of £3.1m and normalised pre-tax profits of £0.3m, when reported on the same basis as the group, after charging organic investment costs of £0.3m in the year while Begbies Traynor Group plc, ranked 17th in the latest Accountancy Daily Top 75 Firms survey, reported that their 2020 revenue was £70.5m. The acquisition is expected to immediately enhance earnings.
In February 2021 Begbies Traynor Group acquired Hargreaves Newberry Gyngell Limited and in January they paid £20m for the independent firm CVR, in its largest insolvency acquisition to date.