Tue, 31 Aug 2021 | BUSINESS SALE
Tavistock has completed the £40 million sale of its asset management division Tavistock Wealth to Titan Wealth Holdings. The deal values the business at around a 7.2x multiple of its £5.5 million revenue for the year ending March 30 2020, on which it generated post-tax profits of £2.3 million.
An agreement for the deal was first announced in June 2021, at the same time that Titan Wealth Holdings was launched by private equity houses Ares Management and Maven Capital Partners and agreed a ten-year strategic partnership with Tavistock.
Titan is looking to grow to between £20-£30 billion in assets under management (AUM) through acquisitions over the next five years. Tavistock Wealth, which has around £1 billion in AUM, was announced as one of its first two acquisitions, alongside Global Prime Partners. The deal was approved by Tavistock shareholders last month and by the FCA earlier in August.
Titan’s joint CEO James Kaberry and Andrew Fearon said: "We are very pleased to have completed the acquisition of Tavistock Wealth. We value the strong relationship we have built with Tavistock and look forward to working closely with them.”
“Tavistock Wealth will be renamed Titan Asset Management. John Leiper will continue in his role as chief investment officer, overseeing a well-established team who have an excellent investment track record, and who will play a key part in the roll-out of Titan Wealth's central investment proposition that is being launched for both large and smaller IFA groups."
Tavistock CEO Brian Raven added: "We are pleased to have completed this transaction which endorses our corporate strategy. Our partnership with Titan Wealth will enable us to accelerate our growth plans and deliver maximum value to our shareholders. We also look forward to continuing to work closely with the highly successful investment team at TWL."
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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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