Shares of Manchester-based corporate rescue firm Begbies Traynor Group plc rose about 7% on Monday after it announced it completed the £20.8m acquisition of CVR Global LLP, the largest insolvency acquisition the group has undertaken to date.

“CVR is a leading independent firm of insolvency practitioners, forensic accountants and experts in other related complementary disciplines,” said Begbies Traynor.

“The firm’s specialisms include restructuring, financial distress, fraud and asset recovery, business disputes, and pension covenant reviews.

“The business operates from seven UK offices in London, Birmingham, Bristol, Southampton, Hove, Medway and Colchester; together with offshore offices in Gibraltar, Jersey, Cyprus and the British Virgin Islands.

“The team of 90 partners and employees will all join the group and enhance our existing strong network of offices and teams across London and the South of England.

“In common with our previous insolvency acquisitions, the CVR team will operate as Begbies Traynor and BTG Advisory moving forwards.

“There is a significant overlap of operating locations, which will enable the group to combine local operating teams in single offices and derive operating synergies, which are expected to be worth at least £0.75m per annum when fully realised …

“In the financial year ended 31 March 2020, CVR reported annual revenue of £9.5m (audited) and normalised pre-tax profits of £1.2m when reported on the same basis as the group (unaudited).

“In the first six months of its current financial year, trading continued in line with this performance. Net assets were £4.1m (including net debt of £2.5m) at 31 March 2020.”

Begbies Traynor Group executive chairman Ric Traynor said: “The acquisition of CVR is our largest insolvency acquisition to date and is expected to be immediately earnings enhancing.

“The increase in scale and capabilities leaves the group well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues.

“The group continues to consider further acquisition opportunities and organic investments in both of its divisions, in line with our stated strategy.”