Manchester-based corporate rescue firm Begbies Traynor Group plc announced the acquisition of Axiom Consulting & Investments Limited and Ellayaan Limited and their subsidiary undertakings, which together trade as Mantra Capital, a London-based property finance brokerage.

Begbies Traynor said the acquisition will be for an initial consideration of £4.5 million, comprised of £4 million in cash from and the issue of 352,361 new ordinary shares, and a potential earn out of up to an additional £13.5 million in a mix of cash and shares.

“The group’s strategy is to increase the scale and quality of its businesses both organically and through value-accretive acquisitions to both complement and diversify its range of service offerings,” said Begbies Traynor.

“In May 2021, we acquired the MAF Finance Group, a well-established finance brokerage, which has performed strongly in its first twelve months within the group.

“Finance broking complements the group’s other advisory and transactional services, particularly debt advisory and restructuring, as well as the valuation and sale of assets.

“Mantra together with MAF Finance Group will form BTG Funding Solutions, a finance brokerage with expertise across a wide range of sectors, including real estate, construction, engineering and manufacturing, haulage, healthcare, agriculture, renewables and vehicles.

“The combined team of 70 employees with an enhanced national coverage, generated annual fee income of c.£8m and arranged finance in excess of £800m for clients over the last twelve months.

“The combined BTG Funding Solutions team will aim to continue its strong record of growth through the recruitment of experienced employees.

“It will market its services directly to the corporate community and also through the group’s existing, extensive referral network of accountants and other professionals, in addition to supporting the group’s client assignments.

“The acquisition is expected to be immediately earnings enhancing and will be reported as a part of the business recovery and financial advisory division.”

Begbies Traynor executive chairman Ric Traynor said:  “The acquisition of Mantra is in line with our growth strategy to complement and expand our services and regional coverage, whilst enabling us to form a national finance business serving a wide range of sectors.

“We believe access to finance will be critical as the economy addresses its current challenges.

“BTG Funding Solutions will be a major addition to the support and advice we can provide, whilst enhancing our long-term organic growth prospects.”