Smith & Williamson to work Begbies Tax hard
Begbies Tax's numbers suggest the divison will have to up its game at S&W
SO SMITH & WILLIAMSON has emerged from the fog of idle gossip to purchase Begbies Traynor’s tax division.
Just a quick look through the numbers suggests that the top ten firm will have its acquirees working pretty hard.
The purchase figure was £2.9m, with Begbies taking a 50% share of all fees above £5.8m for 2011/2012.
Begbies now former division consists of 12 partners and 55 staff, who brought in £7m of fees for the 30 April 2011 year-end.
S&W’s partners averaged out £760k in fees in the previous year, according to the Accountancy Age Top 50 + 50 survey of firms. It also turned a decent profit as well – £23m on £171m of turnover.
Begbies’ tax team posted £100,000 in earnings before interest, tax and amortisation.
There is no word yet on redundancies, but whatever the case on jobs it’s very clear that S&W will be looking very closely about how it can improve partner income and no doubt the team’s cost base.
The numbers don’t lie.