Made in the Midlands Patron Mattioli Woods has strengthened its market presence with the £4m acquisition of a West Midland financing planning firm.
The Leicester-based specialist wealth management and employee benefits business issued an announcement to the London Stock Exchange stating it had acquired the entire issued share capital of Broughtons Financial Planning Ltd from its shareholder for a total consideration of up to £4.0 million.
Broughtons was founded in 2001 and provides wealth management advice and administration for 250 individual clients with over £120 million of assets under advice. Based in Oldbury, the business specialises in the provision of financial planning advice.
Following acquisition, Broughtons' experienced management team will be retained by Mattioli Woods.
Mattioli Woods said it expected the acquisition to be earnings enhancing in the first full year of ownership.
In the year ended July 31, 2017, Broughtons generated a pre-tax profit of £0.62 million on revenues of £0.99 million. At the same date, Broughtons' net assets were £0.56 million.
The initial consideration comprises a cash plus shares deal of £2.7 million. A further £1.3 million has been deferred for an additional two years depending on performance.
Commenting on the acquisition, Ian Mattioli, Chief Executive Officer of Mattioli Woods, said: "Broughtons has a similar culture to Mattioli Woods and holds high values with the client being at the core of all it does. The combined business gives us all opportunities to grow and develop the client offering and we welcome Gary and his team. Long term stability and sustainability is key to growing a modern financial services group and we will all continue to strive to achieve this."
Gary Bond, Broughtons' Managing Director, added: "From our initial discussions with Mattioli Woods it was clear that we shared the same values and business culture. We are all excited by the opportunity this gives us as we work to create a great financial services business and to be part of a large group which has clients at its core."
