Restructuring firm FRP Advisory Group has acquired Sheffield-based competitor Wilson Field Group. The deal is worth £4.8 million.

FRP made the announcement on the London Stock Exchange. The deal includes a cash payment of £3.1 million and the issuance of new ordinary shares valued at £1.7 million. The net assets will be purchased for an additional payment once the deal is completed. Notably, two directors from Wilson Field, Nick Wilson and Kelly Burton, have now become partners at FRP. Wilson’s entire team of 61 employees has also joined FRP Advisory Group.

The disclosed deal value represents an approximate 6.8x multiple of Wilson Field’s unaudited reported EBITDA of £700,000 for the year ending August 31, 2022. The unaudited revenues of £5.3 million have generated this EBITDA. Wilson Field is projected to provide an incremental contribution of £5.6 million in revenue and £1.1 million in adjusted EBITDA.

This marks FRP Advisory Group’s seventh acquisition since its initial public offering three years ago. Full-year results, published earlier this summer, showed total revenue of £104 million. This equates to to an average of £1.3 million per partner. FRP has established a significant presence in the competitive administrations market. The firm commands a 14% market share.

Positive news for Insolvency leaders FRP!

Geoff Rowley, CEO of FRP Advisory, commented on the acquisition, stating, “Wilson Field is a great business that supports our growth strategy, with a highly complementary digital platform and on-the-ground presence in South Yorkshire. We are pleased to welcome Kelly, Nick and the team to the Group and look forward to working together. They share our values and I have no doubt will make a strong contribution to FRP Advisory Group.”

Nick Wilson, the founder of Wilson Field also expressed his enthusiasm: “The move will create opportunities and enable us to extend the range of services we can offer to our clients. We are culturally aligned and look forward to accelerating our growth as part of the FRP Advisory Group.”

This acquisition clearly highlights the state of business insolvency in the UK at the current time. The uncertainties in today’s economic climate have created a buoyancy period for insolvency and restructuring practitioners. As more and more businesses, especially those operating in service sectors enter administration and liquidation, the demand for insolvency experts is on the rise. 

Elevated levels of bad debt, inflation, increased operating costs, and reduced consumer confidence The contributing factors that have led to this include elevated level of bad debt, inflation, increasing operational costs and reduced consumer confidents. Some insolvency practitioners have also turned to mergers and acquisitions as a means to expand their reach and capitalise on this demand.

Discover further insights into the insolvency patterns in the UK with Administration List.