CBG Acquire Marcus Hearn & Co.
Manchester based broker CBG Group has today announced its acquisition of the flagship division of the Marcus Hearn Group in a deal that looks set to given the company access to a wider physical market across an existing customer base.
The move will see the northern-focused CBG Group take on Marcus Hearn & Co, which provides insurance services to a specialised market from its headquarters in London in return for cash and shares to the value of around £2.7 million, roughly calculated on a twenty four month revenue multiple model.
At present, Marcus Hean & Co hold assets to the value of just under £800,000, having reported a turnover of £1.33 million over its 2006 accounting period. Its profit prior to tax for the period was calculated at a fraction under £70,000 enabling it to fit within the 20% marginal tax rate for small companies.
By expanding into the south of England through Marcus Hearn & Co, CBG will bring its insurance brokering services to a wider cross section of the national customer base, whilst providing enhanced opportunity for geographic expansion throughout the UK.
The deal is split into intial and deferred consideration, pending company performance over the coming two trading sessions. It includes both cash payment as well as stock options within the CBG Group for the Marcus Hearn Group, the owners of the trading division sold off today.
It is also expected that CBG will make payment representative of the value of the company’s assets on top of consideration for the business in a cash advance, which should roughly top £800,000.
A spokesman from CBG today has said the group is delighted to have had the opportunity to grow geographically, whilst it envisages a more rounded platform for national and European expansion of its brokering business.
Category: Business Insurance News, Companies News
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