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Deal Opportunities.co.uk

the UK marketplace for company sales

R&D tax relief consultancy

Reference
S11438
Turnover
£0.5m to £1m
Sector(s)
Business services, Professional & financial
Region(s)
UK Wide
Added
12 March 2024

Business description

Established in the mid-2010s, the company is a UK-based consultancy specialising in securing government tax incentives for businesses engaged in research and development (R&D) activities. With expertise across R&D Tax Relief, Research and Development Allowances (RDAs), Fixed Asset Analysis, and Land Remediation, the company assists clients in navigating the complexities of maximising their R&D tax benefits. 

The company boasts a successful track record across various sectors, including mechanical engineering, health supplements, IT systems, and video and software development, and has cultivated a well-diversified client base exceeding 200 active clients. Client testimonials consistently emphasise the significant financial advantages achieved through the company's services, highlighting its professionalism, technical expertise, and commitment to efficient processes that adapt to evolving regulations. 

The company operates remotely, with a team of 8 staff members (including the current shareholders), comprising operations, sales, technical and finance directors, as well as a financial analyst, R&D auditor, administrator and submissions manager.  

Investment highlights: 

  • Home-based business with remote operations.  
  • Recurring revenue streams through long-term client contracts. 
  • Diversified risk with a large client base and low client concentration.  
  • Providers of a fully-managed service. 
  • Experienced team with a proven track record. 
  • Strong potential for future growth in a dynamic market. 

Market opportunity: 

  • Growing demand for R&D tax relief and the need for specialist support amongst companies and accountants due to increasing claims as well as the changing R&D tax relief regime, with new rates and technical/administrative changes in how claims are presented and submitted.  
  • Potential for expansion into complementary service areas like grants and match funding technology, as well as other areas of tax advice (capital allowances, VAT, etc.), with opportunities for cross-selling to the existing client base.  

Highlights

  • Remotely-operating advisory firm specialising in helping companies to access and maximise their R&D tax benefits;  
  • Diversified risk with a large client base and low client concentration;  
  • Growing market for R&D tax relief;  
  • Proven financial viability, with a turnover in excess of £1m in 2020 and 2021;   
  • Opportunities for service expansion.    

Financials

Turnover (£'000) Adjusted EBITDA (£'000)
2020 (Actual) 1,161,380 605,333
2021 (Actual) 1,116,980 645,732
2022 (Actual) 675,032 304,431
2023 (Actual) 355,714 -5,970

Historically, the company has achieved some impressive financial milestones, turning over £1.16m in 2020 and £1.1m in 2021, with operating profit margins of 58% and 65%, respectively.  

Opportunities

  • A growing market with increasing number of R&D claims;  
  • Significant scope to expand into complementary service areas, such as grant advisory, Patent Box relief, HMRC dispute resolution, as well as more generalised tax advice; 
  • Scope to improve lead generation efforts.    

Prospective purchasers



Prospective purchasers will be required to sign an NDA.

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