Tue, 12 Dec 2023 | BUSINESS SALE
Begbies Traynor has continued its acquisitive growth strategy with a deal for property auctioneers SDL Auctions Ltd. The deal is worth up to £3.25 million, which represents a 6.5x multiple of SDL’s normalised pre-tax profits of £500,000 for the year ending March 31 2023, generated on revenue of £4.5 million.
SDL Auctions Ltd trades as SDL Property Auctions. Following the acquisition, the company will be integrated into Eddisons, Begbies’ advisory and transactional services division, with all 46 staff joining the company.
The deal broadens Eddisons footprint across the Midlands and provides further nationwide expertise and scale in auctions. The division was created in 2014 following Begbies’ acquisition of Eddisons and, since then, it has built a strong track record of acquisitions in property services, targeting deals that enhance and broaden both its geographical coverage and service offerings.
The acquisition comes amid a period of busy activity for Begbies Traynor, which has seen booming trade in its core business of insolvency services, amid widespread and growing financial distress among UK businesses.
Earlier this week, the company reported double digit profit and revenue growth and said that it intends to continue targeting organic and acquisitive growth opportunities. The listed firm added that it expects insolvencies to continue to increase in the UK.
Eddisons Managing Director Anthony Spencer said: "I am very pleased to welcome the SDL team to Eddisons. The acquisition significantly increases the scale of our auction business and I look forward to working with the team in the future.”
"This is the fourth acquisition for Eddisons in 2023 and we continue to seek further opportunities for expansion across the UK."
Begbies Traynor Group Executive Chairman Ric Traynor added: "The acquisition of SDL Property Auctions is in line with our strategy to develop our property advisory and transactional services division, by increasing both its scale and market position, as well as the scope of its service offering and geographical coverage.”
"Our combined team will be one of the largest property auctioneers by volume nationally. SDL has an excellent reputation, and we are looking forward to working with the team."
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