Professional services firm Begbies Traynor has announced the acquisition of a long-established insolvency practice in a deal which could be worth up to £25m.
The Manchester-based listed group's move for David Rubin & Partners, which has offices in London and Guernsey, is the largest acquisition the firm has undertaken to date.
The initial consideration of £12m will be funded through a vendor placing of £10m and the issue of new ordinary shares worth £2m.
There will also be deferred consideration and earn out payments in cash of up to £13m, subject to financial performance of the acquired business over a period of up to five years.
The group has also raised £22m through the placing of more than 9.4million new shares at 105.50p each to help fund the acquisition.
Mark Fry, head of business recovery and advisory of Begbies Traynor Group, said: "The acquisition of David Rubin & Partners significantly increases the scale of our business recovery and financial advisory business.
"Combined with our recent acquisition of CVR, we have also materially increased our scale in the key London market.
"We welcome the team into the group and look forward to working with them."
Ric Traynor, executive chairman of Begbies Traynor Group, added: "This acquisition is our largest to date and is expected to be immediately earnings enhancing.
"It leaves the group well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues.
"With the benefit of our recent acquisitions and other organic growth initiatives the group is well positioned to deliver material growth in the 2021-22 financial year."
He added: "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."
