Fri, 29 Jan 2021 | BUSINESS SALE
Independent financial advisor (IFA) Thorntons Investment Management Ltd has received funding from ThinCats, an alternative finance provider for mid-sized SMEs, to support a double acquisition. Thorntons Investment Management used the financing to acquire Matheson Financial Consulting and Sonas Wealth Management.
Aberdeen-based IFA Matheson Financial Consulting provides whole market financial advice to its clients. The firm was founded in 2003 and has £130 million in assets under management.
Sonas Wealth Management provides financial planning for individuals, families and businesses across Dundee, Angus and surrounding areas. The company was founded in 2017 and has £45 million in assets under management.
The acquisitions came as Thorntons sought complementary partners to build its offering and support its growth strategy. Following the deals, Thorntons says it will continue to seek opportunities for further acquisitions.
Thorntons Chief Executive Stephen Webster commented: “We are pursuing an ambitious growth trajectory, and these acquisitions take us well on our way to achieving our goals. The team at ThinCats are committed to supporting mid-sized enterprises like us and have demonstrated a deep understanding of this section of the market and their funding needs. We are very much looking forward to our next stage.”
Webster added: “These deals are an important milestone for us. After many successful years, we were keen to start seeking out promising partners who could help us expand our footprint and continue strengthening our financial planning proposition.”
Stuart Thompson, director, regional business development at ThinCats, said: "Businesses like Thorntons are a prime example of those that ThinCats specialises in supporting – dynamic, ambitious companies with an experienced and progressive management team. It will be rewarding to see the success of this and future acquisitions, and we wish them all the very best."
The acquisitions add around £175 million in assets under management to Thorntons Investment Management’s existing £420 million. Both target companies will retain their existing leadership and model before being amalgamated into Thorntons in due course.
Both companies, however, will have their back-office systems and support functions integrated in order to develop their service proposition for clients, Thorntons said.
Matheson Financial Consulting Director Rory Matheson said: “We’ve had conversations with numerous potential investors over the years but were drawn to Thorntons Investments as an adviser who genuinely understands our business and culture.”
“With regulatory and operational pressures heightening year by year, this deal will not only lighten the load and enable us to devote our full attention to serving clients, but also allow our promising young advisers to flourish.”
Sonas Wealth Management MD Chris Forde commented: “Teaming up with a larger local firm with aligned values and aspirations was key to me and I believe it to be beneficial for our clients and team. I have known and admired Stephen for many years and look forward to working closely alongside him and our new colleagues to continue to develop the aligned businesses.”
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This established IFA is assigned to one major platform ensuring a very smooth transition of client assets.
This is a highly profitable business with EBIT percentage of 33%, meaning money can be recouped quickly after a purchase.
With advisers and back-office staff in place, this business can be purchased and will keep running efficiently.
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