Begbies Traynor buys Banks Long, chartered surveyors

Begbies Traynor Group plc, the Manchester-based business recovery, financial advisory and property services consultancy, said it has completed the acquisition of BLC No1 Limited, which trades as Banks Long & Co, for up to £3 million.

“Banks Long & Co is a firm of chartered surveyors employing 38 staff in Lincoln and operating throughout Lincolnshire and Humberside,” said Begbies Traynor.

“The business will integrate with Eddisons, the group’s property division.

The Banks Long & Co team provide commercial property agency, property management, building consultancy and valuation services to a wide range of regional clients including public and private sector organisations, which aligns with the group’s current service offering and strengthens our regional presence across Eastern England and South Yorkshire.

In its financial year ended 31 August 2022, Banks Long & Co generated revenue of £2.6m (unaudited) and normalised pre-tax profits of £0.4m (when reported on the same basis as the group).

“Trading is projected to at least maintain this level in the current financial year to date. It had net assets of £2.1m (including £1.4m cash) as at 31 August 2022.”

On the reasons for the acquisition, Begbies Traynor said: “The group’s overall strategy is to increase the scale and quality of its businesses both organically and through value-accretive acquisitions, thereby delivering strong, sustainable financial performance.

Our strategy in property services is to enhance and broaden our service offerings and geographical coverage. Since the creation of the division through the acquisition of Eddisons in December 2014, the group has built a strong track record of acquisitions that have met these criteria.

“This strategy has increased the scale of the division from annual revenue of c£13m at inception to a current run rate in excess of £30m, demonstrating strong growth and enhancing the group’s earnings.

“The acquisition is in line with our strategy, as the Banks Long & Co team will strengthen our existing offering and footprint in Eastern England and South Yorkshire and follows the recent acquisitions of Mark Jenkinson & Co (March 2023 – Sheffield) and Budworth Hardcastle (June 2022 – Eastern England).

“The acquisition is expected to be immediately earnings enhancing.”

Begbies Traynor said it will pay an initial consideration of £1.5 million, payable £1.125 million in cash and through the issue of 292,170 new ordinary shares.

There is an earn out of up to £1.5 million, subject to growing the profitability of the business “with the full payment subject to aggregate pre-tax profits of £5.0m over the five year period post completion.”

Eddisons director Anthony Spencer said: “I am very pleased to welcome the Banks Long & Co team to Eddisons, which extends our footprint into Lincolnshire and enhances our existing presence in Eastern England and South Yorkshire.

“The Banks Long & Co team are highly experienced with a proven track record in delivering high quality professional advice to public and private sector clients. We continue to seek further opportunities for expansion across the UK.”

Begbies Traynor executive chairman Ric Traynor said: “The acquisition of Banks Long & Co 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.

“Banks Long & Co has excellent relationships within its local market place offering its clients a broad range of real estate services which they have developed over many years and we are very much looking forward to working with them.”