Begbies Traynor Group has acquired BSMH Limited, which trades as Barker Storey Matthews (BSM).
BSM is one of the largest independent firms of chartered surveyors in Eastern England with offices in Cambridge, Huntingdon, Peterborough and Bury St Edmunds.
The firm has 38 employees and will be integrated with the group’s existing Eddisons property services division.
The core services offered are commercial property agency, property management, building consultancy, professional services (including valuations) and planning services, consistent with those offered by the existing Eddisons business.
In the financial year ended 31 March 2018, BSM reported annual revenue of £3.1 million and
pre-tax profits of £0.6 million. It had gross assets (excluding cash at bank) of £0.7 million as at 31 March 2018.
The acquisition is for an initial consideration of £1.6 million, to be satisfied by £1.067 million in cash from the Group’s existing resources and through the issue of 844,290 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 £1.4 million will become payable subject to the achievement of stretching financial targets for the business in the three year period directly following completion. Any additional consideration is calculated according to an agreed formula and is payable in cash.
Anthony Spencer, director at Eddisons, said: “I am very pleased to welcome the BSM team into Eddisons; it widens our geographical coverage to 20 offices around the UK and increases the number of clients.
“This is our fifth Eddisons acquisition since we joined the Group and we continue to seek opportunities for further growth, both organically and by strategic acquisition.”
Ric Traynor, executive chairman of Begbies Traynor Group plc, added: “The acquisition of BSM is in line with our strategy to develop our property services division, by enhancing our expertise and geographical coverage. BSM is highly complementary in terms of its skills, and extends our reach into a new and important region.
“The firm has excellent relationships with a broad range of clients and a strong track record of growth and profitability.“