Thu, 08 Jul 2021 | BUSINESS SALE
Property due diligence firm TM Group has been sold for £91.5 million, around a 30x multiple of the company’s most recently reported post-tax profits of £3.073 million. The deal has seen Connells and LSL sell their respective stakes in the firm to Canadian-headquartered Dye & Durham, which provides cloud-based software and tech solutions for legal and business clients.
TM Group was founded in 1999 and provides technology-enabled products designed for use in residential and commercial real estate due diligence, including its sales progression tool Mio. The company operates across England, Scotland and Wales, with clients including conveyancers and law firms.
The sale to Dye & Durham sees Connells generate £58.7 million on its 64.58 per cent majority shareholding, while LSL generates £29.3 million from the disposal of its 32.34 per cent stake. LSL says it will deploy the sale proceeds into opportunities to accelerate its growth strategy.
Connells CEO David Livesey, who is also TM Group’s outgoing Chairman, commented: “We are proud of the business that we built and which is set for further development under the ownership of Dye & Durham.”
“They are the ideal acquirer for TM, enabling it to evolve as part of a global operation and providing a good fit alongside the stable of specialist businesses that they are assembling. We are excited for the future of TM Group, wishing the team ongoing success, and look forward to continuing our partnership with them as customers for the long term.”
Dye & Durham Chief Executive Matt Proud said: "We are pleased to be announcing this latest acquisition as it allows us to further scale our business in the UK and deliver top-tier solutions to the property conveyancing market participants who rely on our technology for their day-to-day activities."
In its most recent reports at Companies House, TM Group reported pre-tax profits of £4.2 million on turnover of £57 million for the year ended December 31 2020. At the time, the company’s net assets stood at £4.9 million.
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This established IFA is assigned to one major platform ensuring a very smooth transition of client assets.
This is a highly profitable business with EBIT percentage of 33%, meaning money can be recouped quickly after a purchase.
With advisers and back-office staff in place, this business can be purchased and will keep running efficiently.
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