Following a restructure and rebrand in September, KW Wealth – formerly known as European Wealth – has acquired the Yorkshire based firm Marchant McKechnie Independent Financial Advisers. The acquisition is the first for KW Wealth since its rebranding and appointment of new chief executive, Marianne Ismail.
Initially, the deal was for a payment of £1.6m, but could rise up to £4m. In a statement, KW Wealth said: “The £4m consideration comprises an initial cash payment of £1.6m with a deferred sum of up to £2.4m. This is payable in cash or, at the seller’s request and Kingswood’s agreement, Kingswood shares, subject to certain revenue metrics being achieved over the next two years.
“For the year to 31 December 2017, Marchant McKechnie generated EBITDA of £855k, meaning the acquisition has been completed at a valuation of 4.7x 2017 EBITDA. For the same period Marchant McKechnie generated profit after tax of £499,000. The acquisition is expected to be immediately earnings enhancing to the group.”
Marchant McKechnie founder Neil McKechnie said: “KW Wealth has a strong platform that will enable a number of synergies to be realised through the combination of our businesses and we look forward to playing our part in helping KW Wealth achieve their ambition of becoming one of the leading wealth management providers in the UK market.”
The IFA firm is currently based in Beverley, East Yorkshire, and will continue to operate from there, joining the ranks of KW Wealth’s other offices in London, Manchester, Cheltenham, Maidstone, Brighton and Worcester.
David Inglesfield, Head of Wealth at KW Wealth added: “Marchant McKechnie’s client-first approach is a natural fit for our business. The provision of good quality independent financial advice is more important than ever. We often see clients with complex requirements so it’s important that, as part of our growth, we partner with businesses that allow us to continue providing best in class advice and client care throughout the UK.”
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Gunner & Co. work with IFAs looking to sell their business, and can give you more information if you wish – contact louise.jeffreys@gunnerandco.com
