New deal builds on successful 2021 acquisition
The terms of this latest transaction, which like previous deals is expected to immediately enhance earnings, include a £4.5m upfront payment (£4m cash / £0.5m shares) and a potential £13.5m earn out (cash & shares mix) subject to material profit growth in the next four years under ownership.Mantra will join MAF Finance Group (acquired May 2021) to form BTG Funding Solutions, a national finance brokerage with complementary sector expertise. Its FY21 revenues were £4.2m, normalised pre-tax profits £1.2m (reported on the same basis as the group).
We have adjusted our forecasts for the contribution from Mantra this year, use of cash and new shares issued. This transaction underpins our view of fair value at 175p / share now equivalent to 17.5x FY23e PER, still based on a relatively conservative view of entirely organic growth.
Begbies Traynor Group is a business recovery, financial advisory and property services consultancy. Co. provides these services through two operating segments: business recovery and financial advisory services, which provides transactional support, valuations and advisory services through its subsidiary, BTG Financial Consulting LLP; and property services, which delivering advisory, such as commercial property valuations, property receiverships, property management and accounting, and as well as transactional services that include property auctioneers, machinery and business asset auctioneers to owners and occupiers of commercial property, investors and financial institution.
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