Wed, 12 Apr 2023 | BUSINESS SALE
Precise Protect, a Northern Ireland-based protection and insurance business, has been acquired by Tavistock Investments in a deal that could rise to £7 million. The deal structure comprises a £2.75 million cash consideration paid immediately, along with three subsequent annual considerations totalling £4 million linked to Precise Protect’s future performance, as well as £250,000 to be settled through the issue of 3,571,429 new shares in Tavistock Investments Plc.
If the full £7 million consideration is reached, the acquisition would represent around a 4.8x multiple of Precise Protect’s £1.45 million pre-tax profits for the year ending October 31 2022, generated on turnover of £6.5 million. At the time, the target company’s net assets were valued at £1.23 million.
Precise Protect offers life and critical illness cover, personal injury and income protection and private medical insurance to over 37,000 UK clients through a network of more than 200 advisers. Several of the company’s services were developed in-house.
The deal takes Tavistock group up to over 400 advisers and business introducers, with more than 110,000 private clients and 350 corporate and affinity clients with a total of around 16,000 employees. Tavistock said that the acquisition is the first significant takeover in the next phase of its growth plans, following the 2021 sale of its investment management arm to Titan Wealth Holdings.
Tavistock added that the acquisition will provide opportunities to generate operational cost savings and the opportunity for mortgage and protection advisers to be upskilled to become IFAs.
Tavistock CEO Brian Raven commented: “We are delighted to welcome Tony and his team into the group and to add Precise Protect's products to the wider group's service proposition. We look forward to benefitting from numerous synergies, including operational cost savings, increased profitability and new business leads."
Precise Protect Managing Director Tony Close added: "Precise Protect's revenues and EBITDA have grown rapidly and we remain excited about its prospects. However, we are very pleased to be joining the Tavistock group which will enable us to offer a much wider range of services to our clients, as well as deliver a development pathway for advisers and career development opportunities for staff."
Read more about the ongoing M&A boom in wealth management.
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If you are looking for an exit, we can help!
With succession planning in place, this is a great opportunity to gain a presence in Scotland with qualified advisers and back-office support.
Opportunity to acquire a single adviser FA, this practitioner has 140 households so you will be managing profitable clients.
A highly aligned business with three providers mostly used means integration will be smooth, reducing the cost of the acquisition.
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