Wed, 26 Jan 2022 | BUSINESS SALE
Wealth and investment management group Kingswood has continued its recent acquisition drive with the takeover of South Yorkshire-based independent financial advisor (IFA) DJ Cooke Financial Planning.
The town of Conisbrough, DJ Cooke is a long-established IFA which specialises in retirement and financial planning services. The firm’s sole adviser is CEO David Cooke and it has around 340 clients and approximately £70 million in assets under administration (AUA).
The acquisition, Kingswood’s first of 2022, was completed for £1.5 million, approximately a 6.6x multiple of DJ Cooke’s £227,000 EBITDA for the 2021 calendar year, generated on unaudited revenue of around £474,000.
The consideration is payable over a period of two years, with £749,000 to be paid on closing and the remaining balance payable on a deferred basis, with some being subject to certain pre-agreed targets being achieved.
The takeover brings Kingswood’s AUA to more than £8 billion across global retail and institutional clients, while its UK-based funds under management increase to £6.3 billion, with approximately 16,240 active clients.
The deal was financed using funds from a recent issue of £3 million in convertible preference shares. This was the eleventh tranche of shares issued under investment management firm Pollen Street’s £80 million commitment to Kingswood.
Through this partnership, Pollen Street has provided Kingswood with £77.4 million in growth equity to support its acquisition drive. Last year, Kingswood completed a number of acquisitions, including deals for IBOSS and Admiral Wealth Management, and says it has a strong pipeline of potential future deals for 2022.
Kingswood UK CEO David Lawrence said: "'I am delighted to welcome David and the team at DJ Cooke Financial Planning into Kingswood. This is our first acquisition of 2022 and we continue to have a strong pipeline of high-quality UK opportunities under negotiation, five of which are in the exclusive due diligence stage."
Find businesses for sale here.
If you are looking for an exit, We can help!
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.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.