Begbies Traynor buys London-based Hargreaves Newberry Gyngell

Hargreaves Newberry Gyngell has been purchased by Begbies Traynor. The professional services firm acquired the chartered surveyor company to bolster Begbies Traynor’s growing property advisory wing.

Begbies Traynor is a UK based professional services firm, specialising in business recovery work. The company enjoyed growth of 16% leading to the end of March 2020 – leading to an estimated revenue of £70 million – due to its diversification in the lead up to the end of its financial year. This includes a growing financial advisory wing, as well as a fast-developing property services consulting practice – both of which are provided nationally via a comprehensive network of UK locations.

As the firm looks to further strengthen its position in the property services market, Begbies Traynor has added London based company Hargreaves Newberry Gyngell to its operations. The chartered surveyor employs 13 staff, all of whom will now integrate with Eddisons – Begbies Traynor’s property advisory and transactional services division.

Hargreaves Newberry Gyngell provides commercial property management, agency and lease advisory services to a range of clients including private investors, property funds and commercial businesses. In its financial year ending in September 2020, Hargreaves Newberry Gyngell reported revenue of £1.5 million and normalised pre-tax profits of around £200,000.

Anthony Spencer, Director at Eddisons, commented, "I am very pleased to welcome the HNG team to Eddisons; they have an excellent reputation for high quality professional advice, and we look forward to working with them and developing our combined service offering. The acquisition significantly strengthens our property advisory capability in London and the South East, and we continue to seek opportunities for further growth there and across the UK.”

Since the creation of the division through the acquisition of Eddisons in December 2014, Begbies Traynor has increased the scale of the division via a number of acquisitions, which have boosted its annual revenue from £13 million at inception to a current run rate of £22 million. This latest move looks to build on this by enhancing the group’s existing commercial property management services; improving the national coverage of the commercial property agency team; and increasing the capabilities of the firm’s lease advisory team.

Ric Traynor, Executive Chairman of Begbies Traynor Group, added, "The acquisition of Hargreaves Newberry Gyngel 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. HNG has excellent relationships with a broad range of clients which have been developed over many years.”

The acquisition is for an initial cash consideration of £400,000 on a cash free, debt free basis. A contingent cash consideration of up to £600,000 will become payable subject to the achievement of stretching financial targets in the two years following completion.