Consolidator Succession Group, who have acquired 51 businesses since January 2014, most recently adding £255m in funds under management this January through four deals, is changing its model for buying advice firms as it seeks out larger acquisitions.
This in part will include full cash acquisitions – a move away from their previous model of part equity deals, reliant on a number of conditions to exit that equity. This will add to their competitiveness in the market, since from our experience at Gunner & Co. most business sellers do not want shares in the buyers business in place of hard cash.
Mark Stokes, Succession’s proposition and marketing director suggests the group’s acquisition model is flexible and can be changed depending on the firm that is being bought – a subtle move from what appeared to be a more structured approach in the past.
“As our acquisition strategy evolves, so too does the way we pay for the businesses we buy. Different sellers seek different choices, so we are very happy to offer flexibility and choice to the best firms in the marketplace.
“It’s no secret our focus now is on acquisitions that complement existing locations and larger meaningful acquisitions in exciting new locations.” Stokes commented.
