This is how much Begbies Traynor has paid for a London-based insolvency practice

Begbies Traynor has announced the acquisition of the entire issued share capital of Alexander Lawson Jacobs (ALJ) this morning.

ALJ has a team of 24 directors and employees, who will join the group and enhance Begbies Traynor’s existing network of offices across London and the South-East.

Begbies Traynor said the acquisition is in line with its strategy to increase the scale and market share of its insolvency practice.

For the financial year ended June 30, 2019, ALJ reported annual revenue of £3.1m and pre-tax profits of £900,000, when reported on the same basis as the group. It had gross assets (excluding cash) of £500,000 as at June 30, 2019.

The acquisition is for an initial consideration of £2.35m, to be satisfied by £2.1m in cash from the group’s existing resources and through the issue of 296,195 new ordinary shares of 5 pence each in the group. The acquisition is on a cash free, debt free basis.

Under the terms of the acquisition, additional contingent consideration of up to £4m will become payable subject to financial targets for the business being achieved in the five year period directly following completion.

Ric Traynor, executive chairman of Begbies Traynor Group, said: “I am very pleased to welcome the Alexander Lawson Jacobs team to the group. They are an experienced team with a strong recent growth record, which will enhance our existing strong network of offices across London and the South-East.

“This acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice.”

Earlier this week Begbies Traynor also acquired Leeds-based Ernest Wilson, which provides agency services for the sale of small businesses across the UK, for up to £5.6m.

Begbies said Ernest Wilson has 24 employees and is led by an “experienced and well-regarded” management team, who will join the group.