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Begbies Traynor acquires insolvency consultancy CVR International

Begbies Traynor takes over the insolvency consultancy CVR Global

Begbies Traynor has acquired CVR Global for reported potential consideration of £ 20.8 million. The news said that Begbies Traynor is strengthening its core specialty in the face of increasing demand for restructuring services.

With the UK economy expected to enter a double-dip recession due to the coronavirus pandemic, the restructuring industry will extend its boom from last year well into 2021. As a result, one of the few things that investors can really do right now is confident that advisory firms that specialize in bankruptcy and business recovery are confident.

CVR Global is an independent firm of bankruptcy administrators, forensic accountants and experts in other related disciplines and has around 30 partners and professionals. The company has seven UK offices in London, Birmingham, Bristol, Southampton, Hove, Medway and Colchester. along with offshore offices in Gibraltar, Jersey, Cyprus and the British Virgin Islands.

CVR specializes in restructuring, financial distress, fraud and asset recovery, business disputes, and review of pension agreements. For the fiscal year ended March 31, 2020, annual sales were £ 9.5 million – and expected to increase significantly in the future, which has caught the attention of the Begbies Traynor Group.

Begbies Traynor also specializes in business recovery, financial advisory and real estate services to expand its additional capacity for financial distress, asset recovery and many other areas of activity. The transaction is for a maximum potential consideration of £ 20.8 million on a cashless and debt-free basis – and represents the largest bankruptcy acquisition the group has ever made.

Mark Fry, Head of Business Recovery and Advisory at Begbies Traynor, commented: “The acquisition of CVR will greatly increase the size and specialization of our business recovery and financial advisory business in London and the south of England while enhancing our overseas capabilities. The CVR team has a similar style and culture to ours and will fit in perfectly with our business. “

This represents a notable change from Begbie’s Traynor as the company has attempted to diversify its offerings through acquisitions over the past several years. The company’s revenue rose from £ 52.4m to £ 60.1m in 2019, largely driven by a diversification campaign with organic investments and the acquisition of Springboard Corporate Finance. As with the broader consulting industry, however, the company anticipated some disruptions in the new fiscal year resulting from the Covid-19 lockdown and consolidated its core competencies in response.

Ric Traynor, Executive Chairman of Begbies Traynor, added, “With the increase in scope and capabilities, the group is well positioned to increase its market share and continue to grow its revenue and financial advisory revenue.”

Looking ahead, he said: “We are continuing to review further acquisition opportunities and organic investments in both business areas in line with our stated strategy.”