Bradford & Bingley is to acquire Holden Meehan and merge the firm into its Charcol brand to form Cha...
Bradford & Bingley is to acquire Holden Meehan and merge the firm into its Charcol brand to form Charcol Holden Meehan, it was announced this morning.
This decision comes as Bradford & Bingley believes the purchase will both strengthen its position in a changing regulatory climate and bring the firm wider skills of the mid to high net worth market.
Holden Meehan currently operates a fee-based, menu-based approach to remuneration , which specialises in the mid to high-net-worth market as well as in socially responsible investment.
This will fortify Bradford & Bingley's position in a developing regulatory environment, the firm says, as this will ensure the Group will be able to respond to the FSA's draft rules on how IFAs will operate in a depolarised environment.
With this in mind, the purchase will also bring greater personal financial planning skills to Bradford & Bingley in the mid to high net worth market with a special focus on executive pension planning, socially responsible investment and portfolio management services to both corporate and private clients, the firm says.
Last year, Holden Meehan accomplished a turnover of £3.6m with net assets of £56,000 at the end of 2002, something that is reflected in the price of the acquisition.
"It was a relatively small acquisition. However, we consider that we have paid a fair market price," says Siobhan Hotten, spokeswoman for Bradford & Bingley.
Christopher Rodrigues, group chief executive, says the acquisition of Holden Meehan should boost the IFA firm's status as a fee-based advisers as well as the financial prospects for shareholders of Bradford & Bingley.
"The acquisition of Holden Meehan brings specialist financial planning skills to our IFA business," says Rodriguez.
"Charcol is a leader in the mortgage IFA market and we will harness Holden Meehan's skills to build the leading fee based IFA. We will continue to pursue acquisitions that add skills and scale to our lending and distribution businesses and improve return on equity for our shareholders," he adds.
Holden Meehan was created in 1986 by former partner Peter Holden and current managing director Pat Meehan, and it is allowed to give advice on most aspects of personal finance, including pension planning, short and long term savings, and most types of capital investment and portfolio management.
Bradford & Bingley's acquisition of the firm will not change the current management team as it will remain within Charcol Holden Meehan.
As well as announcing the acquisition, a further agreement with GMAC-RFC was also completed today allowing the Group to acquire up to £1.05bn of mortgages over the next seven months.
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