Acquisition

Begbies Traynor Group PLC
06 May 2005



RNS Release

6 May 2005

                           Begbies Traynor Group plc
                               Acquisition of MCF

Begbies Traynor Group plc ('Begbies Traynor' or 'the Group') (AIM: BEG), the
UK's largest independent firm of business rescue and restructuring specialists,
today announces its biggest acquisition since listing on AIM in October 2004. It
has acquired Leeds-based MCF Corporate Finance Limited ('MCF') for an initial
consideration of £1.85 million.

Of the £1.85 million, £500,000 will be paid in shares in Begbies Traynor (to be
issued at 85.5 pence each), to be held by MCF's former proprietors and subject to 
a one year lock in. The balance will be paid in cash; £1 million on completion and
£350,000 over two years. Additional cash considerations are payable up to an
aggregate of £1.85 million over the next five years, conditional on the
achievement of specific profit realisations and overall profit growth targets in
the three years to 30 April 2008, giving a maximum total consideration of £3.7
million.

Founded in 1994, MCF was owned by its three full-time executive directors: Tim
Edwards, Steve Roberts and David Irwin, who are remaining with the Group as
'partners'. Much of MCF's case referrals, like Begbies Traynor's, are from
general practice accountants, where there are no commercial conflicts because
neither Begbies Traynor nor MCF seek to advise companies on their audit or tax
issues.

MCF is a highly-respected specialist corporate finance business focussed on
medium-sized UK business clients. Much of its work is transaction driven,
advising on approximately 25 such assignments a year, ranging in value up to £50
million and the strong reputation of MCF has been built on the deals it has done
in the mid-corporate sector. However, its activities also extend to
investigative, refinancing and recovery assignments across a broad range of
industry sectors throughout the UK.

Last year, in recognition of its excellence, MCF won EN Magazine's Yorkshire
Deal of the Year in the £10m to £50m deal category and was nominated for
'Boutique of the Year' in the prestigious European Venture Capital Association
Awards.

It has nine professional and two support staff, all of whom will be remaining
with MCF. In the year to 31 July 2004, MCF had a turnover of £1.45 million,
producing operating profits of £406,000 after normalised directors'
remuneration.

The above terms and current trading and prospects of MCF allow the directors of
Begbies Traynor to conclude that the acquisition should enhance earnings per
share of the Group, both initially and after any additional consideration is
paid(1).

Begbies Traynor's acquisition of MCF is a key element in its strategy to double
market share by 2007 through acquisitions and organic growth. It intends to
offer an increasing number of closely-related services beyond company
Administrations and Receiverships in the mid-corporate market. The team at MCF
has embraced the challenge of developing Begbies Traynor's corporate finance
service throughout the UK, with an increased focus on services to 'troubled
businesses.'

Ric Traynor, Executive Chairman of Begbies Traynor, comments:

'We're delighted to welcome the team of MCF to the Begbies Traynor Group. The
firm is well-known and respected in the North, with a particular focus on
corporate finance in business turnaround and recovery.

'By joining the Group, MCF has access to our network of contacts, which will
enable Begbies Traynor to broaden our offerings, and develop new reciprocal
relationships with general practice accountants and corporate lenders, thus
enhancing our referrer base.'


(1)This statement should not be taken to mean that the earnings per share of the
Group will necessarily match or exceed the historical reported earnings per
share of the Group and no forecast is intended or implied.


Enquiries, please contact:

Ric Traynor                     Neil Boom/Rosemary Acfield
Executive Chairman              Gresham PR Ltd.
Begbies Traynor Group plc       020 7404 9000
0161 839 0900


Notes to Editors

About Begbies Traynor Group plc

The Group specialises in corporate insolvency management, offering expertise in
administrative receivership and liquidation services as well as personal
insolvency management including individual voluntary arrangements. It also
offers services in the fields of corporate rescue and forensic investigation.
The Group has grown to its current network of 23 nationwide offices ranging from
Scotland to the South West of England, with over 240 people. The Company intends
to pursue a strategy of organic development, coupled with the acquisition of
specialist knowledge of both individuals and firms, to further increase its
scope and range of services.

The Directors believe that the Group is the UK's largest independent insolvency,
corporate rescue and recovery specialist with clients ranging from major
institutions to individuals with business difficulties.

The Office Network

The Group operates with 45 licensed insolvency appointment takers, some 140 fee
earning staff and 55 in support and administration. In total the Group operates
from some 23 locations of which five are regional offices, a further eight are
full offices and ten are satellites.

Business Activities

The core business of the Group is the formal administration of insolvencies
including receiverships, liquidations, administrations, company voluntary
arrangements and personal insolvencies. The Group has recently extended its
activities into a range of consultancy services including corporate rescue,
credit management and forensic and investigation services.



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