Fri, 16 Dec 2022 | BUSINESS SALE
Acquisitive wealth and investment management firm Kingswood Holdings has continued its expansion with a deal for Berkshire-based Barry Fleming and Partners (BFP). The deal is worth up to £6.2 million, approximately a 4.4x multiple of BFP’s £1.4 million revenue for the year ending February 28 2022, on which it generated pre-tax profits of £190,000.
BFP was founded in 1978 and has over 415 clients, with around £140 million in Assets under Administration (AUA). The firm advises companies, individuals, trustees and charities on tax, investment planning and trusts and has a team of three advisors and a total workforce of six.
Kingswood will pay £3.1 million upon completion of the deal, with the remaining balance paid on a deferred basis over two years, subject to the achievement of pre-agreed performance targets.
The acquisition comes amid an ongoing surge of M&A activity in the UK’s wealth management sector, which is being driven by a range of tailwinds, including the high degree of fragmentation within the industry, increasingly stringent regulations, private equity investment, an ageing population of owners, rising sale multiples and the presence of several large consolidators, such as Kingswood.
David Lawrence, CEO of Kingswood Group, commented: "BFP has a deep rich history and has established itself as a reputable, dynamic and client-centric business over the past 47 years. The depth of relationships with their clients is truly evident through their extensive reputation. Extending into Berkshire is a further acknowledgement of our desire to grow our footprint."
Regarding the firm’s ongoing M&A plans, Lawrence added: "Our growth strategy is important and we are strongly committed to supporting more clients. We have a further three acquisitions under exclusive due diligence that we expect to close in the coming months, plus additional transactions that are currently under negotiation."
Barry Fleming, Chairman of BFP, added: "We have spent time looking to work with a company that can take on our legacy, build on the success of Barry Fleming & Partners as well as understanding the depth of relationships and care we have with our clients. Kingswood's ethos of putting their clients at the forefront of their service proposition dovetails with our own culture of providing a valued service and excellent advice."
BFP Managing Director Lisa Chantrey said: "The whole team are incredibly excited to be working with Kingswood. Kingswood will offer us the platform to grow and develop our legacy.”
"The changing times of financial planning and regulation are burdensome for smaller companies and the move to work with Kingswood will help spread the load of regulation and administration. The team remains unchanged and the move will allow us to concentrate even more of our time on our clients - a central experience at Barry Fleming and Partners."
Read more about the boom in wealth management M&A.
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