Begbies Traynor has agreed to buy insolvency practice David Rubin & Partners, in a deal worth up to £25m.
The deal represents Begbies Traynor’s biggest acquisition to date, and continues the firm’s recent acquisitive spree, which has seen it buy two firms already this year.
Begbies Traynor will pay an initial £12m for David Rubin & Partners, and then over a period of up to five years it will pay additional cash payments of up to £13m, subject to the financial performance of the acquired business.
David Ruben & partners has offices in London and Guernsey. Begbies Traynor said the deal will significantly increase its business recovery and financial advisory business, as well as grow its size in London.
The professional services firm has just raised £22m through an equity fundraising, which will be put towards the David Ruben & Partner acquisition, and used to fund future deals.
Ric Traynor, executive chairman of Begbies Traynor Group said: “We are delighted that both existing and many new investors participated in the fundraise, which was significantly oversubscribed. Our recent acquisitions and organic investments position us well to deliver material growth in our 2021-22 financial year.”
David Rubin & Partners is the professional services firm’s third acquisition this year. In January it bought CVR Global in a deal worth £20.8m, and then the following month it bought chartered surveyors Hargreaves Newberry Gyngell (HNG), in a £1m deal.
Begbies Traynor said it aims to increase the scale of its businesses through both organic growth and acquisitions. It also wants to broaden its service offerings and its geographical coverage.