Mon, 01 Aug 2022 | BUSINESS SALE
Kingswood Holdings has completed a deal to acquire Hampshire-based independent financial advice (IFA) firm Smith Pearman and Associates. The deal is Kingswood’s sixth so far in 2022 and it has stated that it has a strong pipeline of future deals, including seven at an exclusive due diligence stage.
Smith Pearman and Associates brings with it £70 million in assets under administration and 240 clients across the Surrey and Hampshire region. The firm provides tailored solutions for high net-worth individuals, offering services for existing portfolios or new investments based upon a client’s individual needs.
The deal continues a wave of acquisitive activity in the UK wealth management sector. The sector is hugely fragmented, with the majority of operators being independent firms, and this has enabled consolidators like Kingswood to pursue ambitious acquisition strategies.
Kingswood CEO David Lawrence said: “Smith Pearman and Associates has established itself as a reputable, dynamic and client centric business over the past 30 years and we are delighted to have its team of highly skilled professionals join us at Kingswood.”
“This deal also reinforces our presence in Hampshire, building on our recent acquisition of AiM Independent and creating a sustainable hub in the region.”
“Looking ahead, we maintain a healthy acquisition pipeline and are currently in exclusive due diligence talks for a further seven potential acquisitions. Our near-term target is to build our UK AUM and AUA in excess of £10bn in the U.K. and £14bn globally.”
Kingswood received £80 million in investment in 2019, setting aside £77.4 million of this for inorganic growth. This year, the company reported record revenue and operating profit for 2021, with revenue at £149.7 million (up 488 per cent from 2020) and operating profit increasing from around £0.8 million to £6.3 million.
Smith Pearman and Associates director Steve Egginton commented: “Wishing to build on the success of Smith Pearman and Associates, we are joining the Kingswood group to provide our clients with enhanced levels of financial advice and services for the future.”
“Kingswood’s ethos of putting their clients at the forefront of their service proposition dovetails with our own culture of providing great service together with excellent advice.”
Read more about M&A in the wealth management sector.
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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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