Case Study: Shrinking Teams

Lumin Wealth Management make a deal to buy Everett Macleod

The background

ABC Financial Services* are based in the north of England. However, through an historic acquisition had a pocket of clients in the south east, serviced by an employed adviser within the team.  That adviser had given notice, and no one in the team wanted to make the travel commitments to see the clients.  Emma Thompson*, principal in the firm, reached out to Gunner & Co. for help.

The objective

Since the employed adviser was only on a couple of months’ notice, time was of the essence.  Emma didn’t want the clients to be left without advice, so it was key to find a buyer quickly.  It was also important to Emma that clients continued to receive advice at home.

Gunner & Co.’s plan

Gunner & Co. suggested introducing buyers who had substantial experience in completing acquisitions, along with a very well-defined on-boarding plan, to ensure not only the client service continuity but also the security of future payments in the deal. 

Gunner & Co. identified two buyers who had advisers with capacity local to ABC’s clients, who also had a proven track record for completing acquisitions quickly. One firm was chartered, the other was larger, but not chartered.

Initial introductions were done by telephone to keep things moving as quickly as possible.  Emma immediately favoured the larger firm, down to their proven track record.

The deal

The buyer followed up the second telephone meeting for an offer to buy the client book (assets), at an above market price. They set out a timetable along with the offer, which included a split exchange and completion to allow the clients to be contacted as quickly as possible.

“Louise and the team at Gunner & Co. really understood the core objectives we had with this transaction – namely speed and capability.  Louise kept the deal on track with lots of following up and pressure to meet deadlines when needed”

Emma Thompson, ABC Financial Services

*Not real names!