Insider Media Limited

Begbies Traynor's £2.9m sale of its tax services arm has been voted the Deal of the Month for November by corporate finance professionals in the Midlands.

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.

"The 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."

Sam Metcalf, editor of Midlands Business Insider, said: "This might not have been the biggest deal of the month, but it's certainly high profile. Begbies Traynor has offices right across the Midlands, and it allow the company to make acquisitions in the areas in which it is concentrating. Begbies Traynor could be ones to watch over the next 12 months."

Insider’s Deal of the Month is voted on by more than 100 leading corporate finance professionals from the East and West Midlands.