Friday, July 10, 2020

Hull-headquartered IFA acquired by listed investment advice company

Sterling Trust, a Hull-headquartered independent financial advisers (IFA), has been acquired by listed investment advice company Kingswood Holdings.

The business has been acquired for a cash consideration of £17.75 million, payable over a 3-year period.

£7.25m was paid at closing and the balance will be paid on a deferred basis subject to Sterling Trust meeting pre-agreed asset migration, recurring revenue and EBITDA hurdles over a 3-year year period, with the final deferred payment due in June 2023.

An additional deferred payment of maximum £1.775 million is payable over the 3-year period subject to achievement of an excess EBITDA target over that period.

The deal boost Kingswood’s client facing advisory team to 62 people and increases funds under advice/management to £4.8 billion from over 16,000 active clients in the UK and US.

Sterling Trust has four satellite offices in Darlington, Newcastle, Sheffield and York.

“This is a transformative transaction for the Kingswood Group, doubling our wealth advisory business and providing us with an opportunity to own a profitable regional financial planning business with built-in expertise and capacity to expand,” said Gary Wilder, Group CEO at Kingswood.

“There is also a major opportunity over time to migrate existing and new clients to Kingwood’s extensive and growing range of managed investment solutions on our DFM platform, underpinning the value of a fully integrated wealth and investment management business.

“We have a robust pipeline of further acquisition opportunities in the UK and US that we are reviewing; and we have three transactions under exclusive due diligence in the UK.”

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