Acquisition of Birkett Long

Knights Group Holdings plc

("Knights" or the "Group")

Acquisition of Birkett Long LLP and Birkett Long IFA LLP

Further bolstering scale in the attractive South East market

Expansion into wealth advisory services

Knights today announces that it has agreed to acquire Birkett Long LLP and Birkett Long IFA LLP (collectively trading as "Birkett Long"), a premium service regional law firm and independent financial advisory business based in three locations across Essex, in line with Knights' continuing growth strategy.

Acquisition rationale and background

Birkett Long LLP, ("the law firm"), a high-quality mid-market regional law firm which can trace its roots back 200 years, has developed a leading position in Essex over the last 20 years. It brings a team of 91 fee earning professionals delivering premium legal services, with an equal split between service lines for business and private clients. Birkett Long IFA LLP, a separate legal entity ("the IFA") which has been established for 30 years, brings a team of 15. Together, they provide the relatively rare ability to offer both legal and wealth advisory services under one roof, and an entry point into financial advisory, which Knights has long considered a complementary service line and growth opportunity.

In the year ended 31 May 2024, Birkett Long generated revenues of £14.7m, and corporatised PBT of £1m. Following the acquisition, post integration and full realisation of synergies, Knights expects the business to operate at a low double digit PBT margin. The acquisition is expected to be immediately earnings enhancing and will take Knights' annualised revenue to over £200m. 

Birkett Long's three locations in Colchester, Chelmsford and Basildon will allow Knights to add further scale in the South East, and expand its presence in a relatively affluent area of the country, offering existing clients a wider range of services supported by the strength and resources of Knights' well-invested central infrastructure. 

The business is a strong fit culturally and operationally, given its similar private client, real estate and business service lines, giving confidence in a smooth integration.

Terms of the acquisition

Under the terms of the acquisition, Knights will acquire the business from the equity partners for a total consideration of £16.6m, subject to working capital adjustments and on a cash and debt free basis. This comprises an initial cash consideration of £10m, and deferred cash consideration of £6.6m, to be paid in equal instalments on each of the first, second and third anniversaries, subject to certain conditions being met. The consideration will be satisfied from Knights' existing banking facilities. Completion is expected to take place on the 13th of June for Birkett Long LLP. The acquisition of Birkett Long IFA LLP is expected to complete at a later date, as it is subject to FCA consent.

Commenting on the acquisition, David Beech, CEO of Knights, said:

"We are delighted to welcome the Birkett Long team to Knights. This deal significantly expands Knights' presence in the South East, adding scale in areas immediately surrounding London, and provides an entry into wealth advisory, a complementary service which has been of interest to Knights for some time.

"We are confident that without the constraints of independent ownership and building on its growth in recent years, the acquisition will deliver further organic growth in the region."

Martin Hopkins, Managing Partner of Birkett Long, commented:

"We are excited to be joining Knights following a period of growth and modernisation of our business in recent years. Being part of a business of scale will allow us to build on our track record by continuing to grow revenues across both the law firm and the IFA business, allowing us to provide a broader range of services to our regional clients along with even more career opportunities for our professionals.

"We look forward to working closely with the team to offer a broader range of specialisms to our clients and to unlock the significant opportunities in our market."

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Notes to Editors

Knights is a fast-growing legal and professional services business, ranked within the UK's top 50 largest law firms by revenue. Knights was one of the first law firms in the UK to move from the traditional partnership model to a corporate structure in 2012 and has since grown rapidly. Knights has specialists in all key areas of corporate and commercial law and private client services. It is focussed on key UK markets outside London and currently operates from 28 offices locations in Ascot, Beaconsfield, Birmingham, Brighton, Bristol, Carlisle, Cheltenham, Chester, Exeter, Kings Hill, Leeds, Leicester, Lincoln, Manchester, Newcastle, Nottingham, Oxford, Reading, Portsmouth, Sheffield, Solihull, Stoke, Teesside, Uxbridge, Weybridge, Wilmslow, Worcester and York.