Harwood Wealth Management raises £10m for multiple acquisitions

Harwood Wealth Management has revealed plans to raise £10m in new equity capital to fund acquisitions in the near future.

The firm is highly active in term of acquisitions, having spent  £11.7m on acquisitions in the financial year ending 31 October 2016, buying 17 companies.

In a recent announcement, Harwood has said it has signed heads of terms with six businesses. Estimates show this will set the company back £3.1m, whilst adding £156m of assets under advice.

Moreover, the firm announced a further 9 acquisitions on the horizon. If these were to go through, the firm speculated an increase of funds under advice by £960m.

Recent shares issued are valued at 150p, a 14 decrease from the secondary market evaluation. Additionally, the company’s executives agreed to sell a further £2m worth of shares dependent on a higher demand than anticipated.

Harwood joined the junior exchange last year, raising £13m, shortly following its acquisition of Tunbridge Wells private client manager Wellian in 2015, alongside five other purchases in the same period.

Harwood Wealth Management Group plc was created by bringing together Compass Wealth Management Group, founded in 2001 by Neil Dunkley and Mark Howard, as well as Wellian Investment Solutions, led by Alan Durrant.

The shares are conditionally planned to be placed on 19 April following a general meeting on 18 April.

The company has appointed Wellian as the discretionary manager to the firm’s subsidiary advisers.