Begbies in tax subsidiary sell-off
Begbies Traynor Group has completed the sale of its tax services arm, which has major operations in Birmingham, for £2.9m plus an income-related bonus.
The business recovery firm disposed of the business to Smith & Williamson Holdings. It first announced its intention to sell in July this year after a strategic review.
In addition to the £2.9m selling price, Begbies Traynor said it will be entitled to half of all income above £5.8m for the 12-month period ending 30 April 2012.
A further payment dependent on the success of "certain specified client engagements" in the period to 30 April 2013 has also been agreed.
Begbies Traynor's tax division, which comprises its tax and tax investigations consultancy, includes 56 employees and partners located principally in Birmingham, London and Manchester.
For the financial year ended 30 April 2011, it reported revenue of £7m.
Ric Traynor, executive chairman of Begbies Traynor Group, said: "We are pleased to have secured the sale of this non-core business in line with our strategy. We believe it will be better taken forward under Smith & Williamson's ownership, given their strength within the tax market.
"Today's sale will enable the group to focus on its two core businesses (insolvency and global risk partners) to enhance their market positions and take advantage of growth opportunities in their respective markets."
