McInnesCorporateFinance has advised on the merger of Leeds-based Ewitness and Redditch-based medico-legal agency, Medical Report Services Ltd (MRS) to create one of the industry's largest medico-legal reports and rehabilitation services group, to be known as eReporting Group Ltd.

Both businesses specialise in the research, sourcing and provision of impartial and professional medical reports for personal injury and road accident claims to the legal and insurance professions.

Ewitness, which was established by Dr David Pearce in 2000, employs 50 staff at its North Leeds offices and has a current turnover of £10m. MRS, which was established by Alison Foxon in 1998, employs 20 staff and has a current turnover of £6m.

The new Group will also include Ewitness’ Redditch-based associate company Healthcare 24 Ltd (trading as eReports) and MRS’ physiotherapy and rehabilitation services associate company, Remedy Matters Ltd. eReporting Group will manage in excess of 50,000 medical reports and 12,000 rehabilitation cases per annum with a combined turnover in excess of £18m, making it one of the top 3 medico-legal businesses in the UK.

The deal, that was brokered, structured and managed by McInnesCorporateFinance, will see each of the businesses continue to trade as separate entities, providing their existing clients with the high quality of service they have developed over the last few years. The Leeds operation will provide multi-track and complex claim services to the Group’s clients with the merged Redditch operation focusing on delivering rapid case management for fast-track cases.

Dr David Pearce, formerly Chief Executive of Ewitness, and Alison Foxon, who headed MRS, will become joint Chief Executives of eReporting Group with Paul Dodds, former Chairman of MRS becoming Chairman of the new Group. Together they will own a majority shareholding in the new Group.

McInnesCorporateFinance worked closely with David, Alison and Paul to secure an appropriate funding partner in Burdale Financial Ltd who will provide existing working capital as well as resources for future expansion.

Commenting on the merger, David Pearce said: “The formation of the eReporting Group creates a significant new force in the industry. The combined strengths of the companies will enable us to deliver market-leading and sustainable service quality and pricing to insurer, broker and solicitor clients alike. The unique structure of the Group brings together the highly specialist services for complex case management and, probably, the industry’s most efficient producer for fast-track claims. Our immediate focus will be to continue to deliver to our clients an unparalleled service.”

Andy Miller, who led the McInnesCorporateFinance team that structured the deal added: “Ewitness and MRS are highly compatible businesses in operational and management terms. It is clear that the new merged entity will have a very strong platform for significant growth and is now well positioned to become the industry’s natural consolidator.”

Other Leeds-based advisors in the deal included Jonathan Priestley of Lee & Priestley who provided legal advice to the Ewitness shareholders and eReporting Group, Chris Schofield of Schofield Sweeney who provided legal advice to the MRS shareholders and Horwath Clark Whitehill who provided tax advice and due diligence services to the new Group and its shareholders.

Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment and business activities