Investments add up to success for South West accountancy firm

MG Associates, a Torquay-based business services and accountancy firm, is expanding following the acquisition of an existing accountancy practice using a £60,000 working capital facility after switching to Lloyds TSB Commercial.

Established in 2003, the company purchased Dartmouth accountancy firm David J Beeny & Co for £250,000 in December 2010.

MGA provides traditional accountancy and taxation services in addition to a full range of business development services such as strategic tax planning and specialist business development support. This includes business process coaching, strategic planning, cash flow and anti-recession planning.

The newly acquired practice, located on Victoria Road in Dartmouth, brings the firm’s total number of offices to four; the main practice offices being situated in Torquay and Dartmouth with additional sites in Paignton and Cawsand.

Managing director Michael Ghersie approached Lloyds TSB Commercial with his plans for expansion, and after switching to the bank in early December, MGA was able to purchase David J Beeny & Co using the working capital facilities provided.

Following the purchase, the firm is now focused on expanding and developing its customer base throughout the Dartmouth and surrounding area, and the acquisition has produced a boost in client base from 450 to over 800.

The company is also on target to generate £500,000 turnover in the next year, and as a result of the acquisition has increased its total number of employees from four to 12. As well as including several chartered accountants and business advisors, the practice also has an in-house fully qualified independent financial advisor.

Michael Ghersie said: “Acquiring the new practice means that we are able to grow our business further, and help us achieve our objective of becoming a leading business services company in the region. MGA is proud to be the first organisation in the area to offer a full range of business services as well as first-class accountancy and tax services from fully qualified professionals.

“I believe there is a growing need for businesses to receive tailored guidance on a full range of business services from one source; we are meeting that need and providing a one-stop-shop that can offer advice on any aspect of business development.

“Lloyds TSB Commercial understood the importance of the acquisition and was able to offer the guidance and financial support we needed. The support was vital to enabling the purchase to go ahead.”

Martin Potts, relationship manager for Lloyds TSB Commercial, said: “Businesses need to take every opportunity for support and advice, particularly during this time of economic uncertainty, and accountants should be a key part of a company’s trusted advisor network.

“By bringing a new and innovative business services offering to businesses in the region, Michael has placed the company in an excellent position to achieve the goal of reaching a larger client base.

“MGA’s track record, as well as Michael’s thorough business planning, meant that we were pleased to provide the funding to enable the acquisition and expansion of the business.”