Boutique advisory sold to FRP at 5.8x EBITDA
Fri, 19 Jul 2024 | BUSINESS SALE
Lexington Corporate Finance, a boutique advisory firm based in Cardiff, has been acquired by FRP Advisory Group in a £3.5 million deal. The acquisition of the company, which also has an office in Bath, Lexington, is FRP’s first takeover in Wales.
The company provides corporate finance services to clients locally and nationwide. The deal will see one of Lexington’s directors, founder Gary Partridge, join FRP as a partner, while the remainder of the team will also join the group.
The deal represents a 5.8x multiple of Lexington’s unaudited reported EBITDA of £600,000 for the year ending April 30 2024, generated on consolidated unaudited revenues of £2.3 million. Going forward, it is expected that Lexington's underlying incremental contribution to FRP on an annual basis will be around £2.7 million in revenue and around £700,000 in adjusted EBITDA.
The deal is described as aligning with FRP’s strategy of generating sustainable, profitable growth by combining organic growth with M&A activity that fits its selective criteria. According to FRP, this enables it to increase its market share, broaden its service offering and expand its geographical footprint. The deal is FRP’s tenth acquisition since its March 2020 IPO.
FRP Advisory CEO Geoff Rowley said: "Wales was a target region for FRP and this acquisition further strengthens our National Corporate Finance business. The team will go to market locally as FRP Corporate Finance.”
"We are pleased to welcome Gary and the team to FRP; they share our values and I have no doubt will make a strong contribution, as we continue to grow."
Gary Partridge, founder of Lexington, added: "We are delighted to be joining FRP Corporate Finance and are excited at the opportunities that being part of FRP presents for our team and our clients. We are all immensely proud of what we have achieved as a team at Lexington over the past nine years and being part of FRP will be a launch pad to enable us to offer a broader range of services to our clients.”
"We are confident that by building upon our shared values of quality and professionalism with FRP, we will accelerate our growth."
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