SMITH & WILLIAMSON has bought the tax division of Begbies Traynor.
Top 10 firm Smith & Williamson has bought the tax division of listed insolvency specialists Begbies for £2.9m in cash. A further deferred payment could be made in the coming months comprising of 50% of work in progress.
Begbies Traynor announced in July that it was hoping to offload its tax and red flag division, following a strategic review.
Ric Traynor, (pictured) chairman of Begbies Traynor, 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 its 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.”
Begbies Traynor’s tax division, which offers specialist tax and consultancy services, includes 56 employees and partners based in Birmingham, London and Manchester.
For the financial year ended 30 April 2011, the division reported revenue of £7m.
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