Fri, 02 Dec 2022 | BUSINESS SALE
Wealth management consolidator Kingswood Holdings Ltd has continued its acquisitive growth with the acquisition of JFP Holdings in a deal worth up to £12.4 million. JFP Holdings is the holding company of financial advisory firm JFP Financial Services.
Macclesfield-based JFP was founded over 40 years ago and serves clients across Cheshire, Derbyshire and Staffordshire. The firm manages around £360 million of client assets for 1,295 clients, including businesses, employees, medical professionals and individuals.
The acquisition takes Kingswood’s client-facing advisory team to over 115 staff and its funds under management in the UK and Ireland to around £8.5 billion.
Kingswood will pay £7.44 million upon receipt of regulatory approval, with the remaining amount paid on a deferred basis over a two-year period, subject to the achievement of performance targets. If the full amount is paid, it would represent an 8.2x multiple of JFP’s £1.5 million pre-tax profits for the year ending March 31 2022, generated on revenues of £2.5 million.
The consideration will be satisfied using Kingswood’s funding facility, which it announced on October 17 2022. Kingswood has also revealed that it has completed the acquisition of Lincoln-based financial adviser JCH Investment Management, after receiving regulatory approval.
Kingswood Group CEO David Lawrence said: "The acquisition of JFP Holdings will expand our geographical footprint into the Northwest region and an affluent South Manchester area. JFP Holdings are a high-quality business that has operated with its affiliate Josolyne & Co, a leading chartered accountancy practice, for many years.”
"Led by Andy Heywood, JFP Holdings have a long track record of delivering an exceptional level of service and strong client relationships over many years, and I am delighted to welcome them to the Kingswood Group."
JFP Director Andrew Heywood commented: "Throughout the sales process there were a number of important factors that influenced our decision, but the over-riding requirement was for us to have an excellent matching of cultures with any firm looking to acquire us.”
"The cultural fit between our two firms was evident from our first meeting with David Lawrence and has been confirmed throughout our dealings with David and his team."
Find out more about the ongoing surge in wealth management M&A.
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This financial advisory firm has an infrastructure in place to carry on operating profitably post-sale.
Hertfordshire based IFA with 75% of the business' assets with two major platforms, ensuring a smooth transition post-sale.
This firm has an average portfolio size per household above £0.5m, meaning you will be servicing high quality, profitable clients.
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