Belvoir has taken a moment from its attempt to merge with rival Martin & Co to reveal that ten of its Northwood franchisees have acquired local rival businesses, adding 1,000 additional properties under management and £140,000 a year to Belvoir’s group revenues.
Northwood was bought by Belvoir in June last year, adding 86 branches to the group’s total, which now stands at over 300.
Belvoir says the uptick in Northwood franchisees acquiring rivals – which includes five in the past two months alone – has been prompted by Belvoir introducing its Assisted Acquisition programme to Northwood, half of whose franchisees have now signed up to join.
In practical terms, this means Belvoir searches out local rivals ripe for acquisition and then helps the Northwood franchisees broker and fund the deals as well as providing legal, due diligence and business advice support.
Belvoir says it usually agrees to fund up to 30% of the cost of the acquisition, which are “nearly always full business transfers and not tenders for the management of properties,” the company says.
It also claims that Northwood has been growing fast over the past 18 months helped by the assisted acquisition programme but also organic growth and the benefits of merging Northwood’s support functions into the Belvoir HQ operation.
“Our confidence in Northwood, its senior management team and its franchise network to deliver strong growth as part of the Belvoir Group has been more than justified.,” says Belvoir CEO Dorian Gonsalves (pictured, left).
“With the reduced cost base following restructuring of certain functions announced earlier this year and given the robust growth arising from these ten franchise led acquisitions, the Board is delighted with the performance of Northwood.
“It is a huge credit to both teams within Northwood and Belvoir who have made the assimilation of Northwood into the Group such a success.”