Consolidator, Loyal North, has received a sum of £40 million to fund plans to acquire up to 20 financial advice firms over the next two years.
The £40 million will be used to acquire multiple firms across large cities in the UK, with the company’s acquisition’s director, John Hayden leading the Loyal North’s acquisition strategy.
The long term strategy of Loyal North is to focus on growing the business solely through acquisition, with funding coming from sources including Fusion Asset Management as well as a handful of private investors.
The Loyal North proposition differs from many consolidators, whereby they take a 75% stake in individual IFAs initially, and works with each business over a 5 year period in order to cultivate growth and profitability, thus increasing the value of the final 25% stake, which they purchase at a later date.
Loyal North plans to obtain the majority share of up to 20 businesses over the next two years, which they then plan to grow further internally through acquisition of client banks from other IFA’s. The consolidation will incorporate investment into businesses looking not for a ‘quick sale and exit style’, but of a more personal experience, with a long-term partnership opportunity. Loyal North’s culture allows IFA’s to maintain their individual independent trading style, deeming it as “essential” to their approach.
Louise Jeffreys, MD of Gunner & Co., the leading independent M&A broker knows Loyal North well. “This proposition is very appealing to many of my clients – particularly those looking to crystallise the value of their business but remain at the helm. This proposition gives principals a level of autonomy which most acquisitions options don’t, particularly with regard to their investment approach”
What can we expect from Loyal North?
As well as their additional services including Preplanning and Lead generation, Loyal North are said to be investing heavily into a ROBO-advice proposition, an automated approach for clients who are not profitable, Loyal North will be utilising this new and innovative technology to “stimulate interest and create new revenue streams.”
John Hayden, acquisitions director said “We’ve seen a huge amount of interest in the proposition, because it is so different compared to what most acquirers are offering. We’ll be testing the robe-advice technology next month, so we’re moving forward all the time, and all being well we will roll it out in September”
If you’d like to know more about Loyal North’s proposition contact louise.jeffreys@gunnerandco.com
