Newton Fallowell — Acquisition by Belvoir Lettings plc
Established estate and lettings agency network acquired by Belvoir Lettings, illustrating how a scalable franchise model, strong margins and strategic fit can support a valuation above typical sector multiples.
Acquirer
Belvoir Lettings plc
Year
2015
Enterprise Value
£3.954m
Revenue
£1.768m
Adjusted EBITDA
£654k
EBITDA Multiple
~6.1×
Industry
Estate Agent Business
Transaction
Belvoir Lettings plc acquired Newton Fallowell, an established estate and lettings agency network comprising 30 franchised offices and one corporate-owned office, in 2015. The business generated revenue of £1.768m and normalised EBITDA of £654k, representing a margin of approximately 37%. The £3.954m cash consideration paid at completion implied an acquisition multiple of approximately 6.1× pre-acquisition EBITDA. The transaction also included a performance-based earn-out of up to £2.330m, which is not included in the headline multiple.
Why the Premium?
- 30-office franchise network
- Estate agency and lettings operations
- ~37% normalised EBITDA margin
- Scalable franchise model
- Strategic fit with Belvoir
SME Takeaway
Newton Fallowell's revenue fell within the SME Multiples $1–$50M benchmark. The transaction illustrates how an established franchise network, strong margins and strategic buyer fit can support a valuation above the typical estate agency sector range. The ~6.1× multiple is based on the £3.954m cash consideration and disclosed pre-acquisition EBITDA.
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.