The Property Franchise Group, a lettings and estate agency, has announced the acquisition of GPEA and its associated companies, known as The Guild of Property Professionals and Fine & Country, for a total of approximately £20.0m.
This acquisition, split with £15.0m payable in cash upon completion and £5.0m payable on the first anniversary of completion, represents around 5.7x FY23 audited underlying earnings.
The Property Franchise Group revealed that The Guild and Fine & Country serve a total of 1,036 outlets, generating audited revenues of £13.2m, audited underlying earnings of £3.5m, and a pre-tax profit of £3.3m in 2023. Furthermore, 73% of FY23 revenues were derived from recurring memberships and licences.
With the addition of GPEA, TPFG anticipates post-acquisition leverage below 1x FY23 pro forma adjusted EBITDA and immediate earnings enhancement. CEO Gareth Samples expressed excitement about the acquisition, emphasizing the strategy to broaden and deepen the company’s network while enhancing recurring revenue streams.
At 1050 BST, Property Franchise shares saw a 7.37% increase, reaching 434.86p.
This strategic move highlights TPFG’s commitment to growth and providing additional benefits to its network.
—
Keywords: lettings, estate agency, acquisition, The Property Franchise Group, GPEA, The Guild of Property Professionals, Fine & Country, recurring revenue streams, growth
