Texas firm buys GovGrant in deal steered by FRP Corporate Finance

FRP Corporate Finance has advised private equity investment manager Foresight Group on its sale of R & D tax specialist Innovation Consulting Group – known as GovGrant – to Source Advisors in Texas. No figures were disclosed.

St Albans-based GovGrant was founded in 2006 to advise firms on securing the maximum available benefits from government-backed innovation incentives in the UK and maximising the value of their Intellectual Property. The company has secured more than £300 million in research and development and patent box tax relief for its customers.

Based in Fort Worth, Source Advisors is a tax consulting firm which has provided  R & D Tax Credit, Cost Segregation, Energy Efficiency and LIFO inventory solutions for more than 37 years.

This is one of two 2023 exits in which FRP Corporate Finance has supported Foresight following the sale of Camloc Motion Control to Macaulay Capital in March.

FRP says the combined Source Advisors/GovGrant business has pledged to continue to provide “unparalleled expertise, tailored solutions and stellar client service, while working to ensure a smooth transition for clients and employees as they expand their global reach.”

Led by partner Mark Farlow, along with associate director Ed Shurville-Darlington and manager Charlie Hallaran, the FRP Corporate Finance team acted as exclusive sell side advisors on the deal, negotiating the transaction on behalf of shareholders and managing the due diligence process. The firm is UK-wide but has local offices in Cambridge and Norwich.

Mark Farlow, partner at FRP Corporate Finance, said: “This deal means GovGrant is now part of an ambitious global group, providing the potential to accelerate the firm’s future growth.

“It comes as we have seen significant deal activity in the accountancy sector on both sides of the Atlantic as firms look to broaden their range of professional services and enter new markets, often with private equity backing. We expect to see this trend continue throughout 2023.”

Foresight was also advised on the GovGrant deal by Shoosmiths (legal) and Menzies (tax).