News

23
Nov

Tavistock negotiates £3.6 Million deal for Independent Financial Advice arm of Price Bailey

Following talks instigated in 2014, Tavistock has agreed the acquisition of Price Bailey’s Independent Financial advisory division for an amount in the region of £3.6 Million. Price Bailey Financial Services (PBFS) holds a polished name for it’s unique emphasis on client satisfaction and has earned numerous awards recently, including winner of ‘Leading Advice Practice’, in the Schroders UK Platform Awards 2016.
PBFS employs eight advisors as well as fourteen supports staff, with £313m of funds under advice and £166m of funds under discretionary management.
Tavistock will pay a initial sum of £2m to PBFS, raising funds through sales of up to 70,000,000 shares which will leave £100,000 working capital for Tavistock Financial. £150,000 will follow a year after the completion of the deal. Following this will be a variable payment to PBFS of £500,000. This is a conditional sum and may fall depending on business performance, thought to inspire the eight advisors to continue their impressive track record.
The last expected payment will be in the region of £440,000 and could change according to share price at the time.
Price Bailey partner and head of clients James King emphasised that PBFS would maintain the same working practices, quoting that PBFS would be maintained by ‘The same advisers’, ‘The same offices’, ‘The same investments’ and ‘Doing the same thing’. He detailed a willingness “To grow the business and do the right thing for our clients”.
This isn’t Tavistock’s first acquisition. A £2.7m deal was completed in February 2015 to acquire IFA network Financial Limited. However, this deal was made under the knowledge of Financial Limited being previously unprofitable, and by November 2015 Tavistock reported a pre-tax loss of £1.6m but by 23rd November this year Tavistock announced all of it’s advisory firms were trading profitably.