The new owner of CP Bigwood has set its sights on generating £250m of auction sales this year.
SDL Group bought CP Bigwood in January and is in advanced negotiations over another auction house.
SDL chief executive Paul Gratton said: “There are strong opportunities in other provincial cities to expand the business and, over time, to operate nationally.”
Breaking into the London market is a longer-term goal, he said.
With CP Bigwood generating annual auction sales of around £80m, SDL will need to acquire two similarly sized auction houses to reach its target.
The plan is for auctions to contribute 15-20% of SDL’s overall revenue, which also comes from risk management, surveying, lettings, estate agency, mortgages and insurance broking. Auctions provide less than 15% of SDL’s current revenue.
CP Bigwood chief executive Rory Daly said the acquisition was “all about growth and expansion”.
“We’ve got our eye on the North West because we don’t feel there’s a very dominant presence there.” The group is also looking at the Midlands and North East, he added.
SDL, formerly known as Shepherd Direct, also sees the acquisition as a way to boost its commercial agency, professional services and building surveying work.
Gratton said that acquired auction firms would retain local management teams but branding would be merged; CP Bigwood will be known as SDL Bigwood from 6 April.
Gratton said: “In Australia or New Zealand, for example, over half of residential stock goes to auction rather than private treaty.
“In many parts of the world, it’s not viewed, as it is in the UK, as a distressed sale.”
SDL wants to be part of an increase in properties being sold through auction, he said.
The group, which now has a combined turnover of £60m, employs 420 people and plans to increase this to 480 by the end of 2016.
It is also on the hunt for estates management businesses. Gratton said: “There’s a long trail of smaller estates management businesses that we think are ripe for consolidation.”
