Sanlam to re-enter M&A market with new ‘partnership’ offering

Sanlam, who haven’t been active in the M&A market since back-tracking on their partial purchase of Caerus network in May, have announced the roll out of a partnership model for advice firms.
Partnership models are an evolution of Networks, where firms can remain autonomous, but ‘plug into’ larger businesses for support services such as marketing, new business development, administration and compliance.
If, like Sanlam is proposing, the proposition includes funding for succession planning, or practice buy-out mechanisms, partnership models can be a great way to future proof your exit. Typically, you will be expected to write new business in line with the centralised investment proposition of the mother ship, which means your clients are aligned early on.  This removes the inherent risk of a classic acquisition, where it is likely client investments will get moved around.
Sanlam’s partnership programme will be led by Sanlam Wealth Planning chief exec, Alex Morley, and is likely to be rolled out next year.
The initiative has been spear-headed by Sanlam UK chief executive Jonathan Polin, who was hired by the firm in October 2015 to review its wealth proposition.
‘What we’re doing is not rocket science, or that original,’ Polin admitted to Wealth Manager (A NMA title).
‘It’s a legacy of the world we live in, which is divided into two parts. At one end you have scale and at the other end you have the boutique, which is a great model, but you may want to be bigger and part of larger brand.’
If you would like to understand more about partnership options, contact