Thu, 15 Jul 2021 | BUSINESS SALE
Advisory tech platform Praemium has announced that it will seek a buyer for its UK business following a strategic review. The company is also marketing its operations in Jersey, Dubai and Hong Kong, as well as its customer relationship management (CRM) platforms Wealthcraft and Plum as it looks to refocus on its home market of Australia.
The company has engaged Deloitte Corporate Finance to manage the sales process. Praemium’s strategic review concluded that, although the firm’s UK platform generates strong sales, its relatively small scale put it at a disadvantage compared to its competitors. The company said that an owner focused on the platform’s market would help it realise its “impressive potential”.
While a formal sale process for the UK business has not yet started, it is anticipated that there will be no shortage of interest in the UK arm, with Praemium saying it has already received numerous expressions of interest. It is thought that the business’ recent major tech upgrade will help make it an attractive prospect for potential buyers, in a year in which advice sector M&A is already booming.
Discussing the sale, Mark Sanderson, Managing Director of Praemium’s UK & international business, said: “The group board recognises and is rightly very proud of the international team’s achievements to date.”
"It can see the clear potential for capitalising on the international business’s strong growth over the last couple of years. However, it also recognises that realising that impressive potential requires a parent focused on the markets in which the international business operates.”
"We have not formally begun a sale process yet, however, since announcing our strategic review back in May, we have received a great deal of interest from a diverse range of parties. That said, the fit and focus of any potential new owners have to be right for us and right for our clients.”
In the year ended June 30 2020, Praemium UK reported a £4.6 million post-tax loss on revenue of £1.68 million. This is likely to have arisen from the company’s significant investment in its technology offering.
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This established IFA is assigned to one major platform ensuring a very smooth transition of client assets.
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With advisers and back-office staff in place, this business can be purchased and will keep running efficiently.
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