Glasgow, Scotland
Transatlantic consolidator Kingswood has completed the acquisition of Glasgow-based financial advice firm Strategic Asset Managers (SAM).
Expanding its footprint into Scotland, Kingswood bought SAM for £5.1m, the firm revealed today (14 November).
SAM was set up in 2001 and has a team of three advisers and a total of eight employees, managing more than 400 clients with more than £200 of assets under advice (AUA). In the financial year ending 31 March 2022, the firm generated a revenue of £1.2m and profit before tax of £517, 000.
Kingswood group chief executive David Lawrence said: "I am pleased to announce another step forward in the growth of Kingswood as we expand our footprint into Scotland.
"When we are considering acquisitions, we do so with the upmost care, to ensure cultural and client focused alignment. SAM are focused on helping clients across the central belt of Scotland and Perthshire achieve a confident financial future. The opportunity to build our relationships across Scotland is an exciting one as we strive to help more people achieve their goals."
Lawrence added that Kingswood's "build and buy" strategy would continue with a further four purchase transactions under exclusive due diligence that the company expected to close in the coming months. He added that there are additional transactions that are currently under negotiation.
SAM chief executive Derek Stewart said: "Delivering advice in today's complex markets requires significant resources which Kingswood have, and it is no coincidence that they have the same values as SAM.
"We operate in a very similar way and believe this will benefit our clients and present greater development opportunities for our staff. We are proud to become the first Scottish firm to become part of the Kingswood Group."
SAM managing director Fiona Stewart said SAM had worked closely with Kingswood's key personnel during the due diligence processes and was impressed by the quality of Kingswood's people, their vision and technology.
"Joining Kingswood will allow our clients and staff access to technology and resources that were out of our reach as a smaller advisory firm."
Expanding into Ireland
In September 2022, Kingswood bought 70% of Dublin-based advice firm Moloney Investments (MMPI) for £23m. The remaining 30% would be retained by existing shareholders, it confirmed at the time.
The deal represented the firm's seventh acquisition this year and added £633m in AUA, taking Kingswood's funds under advice to over £7.8bn across the UK and Ireland.
It also took Kingswood's client facing advisory team to over 100 people. Set up in 1993, financial advisory group MMPI employed 54 people, including 18 advisers, at the time.
Post-acquisition, the Irish firm would continue to operate from its existing premises and be led by the same team that had served its clients since exception, the consolidator explained.
Buying spree
In the first half of 2022, Kingswood completed six acquisitions: Allots Financial Services; Joseph R Lamb Financial Advisers; DJ Cooke Life and Pensions; AiM Independent Financial Advisers; Vincent & Co; and Smith Pearman and Associates.
Earlier this month, Kingswood bought two more advice businesses, JCH Investment Management (JCH) and Employee Benefit Solutions (EBS), in multi-million pound deals.
Kingswood said in the year ending 31 July 2022, Lincoln-based JCH generated revenue of £901,000 and profit before tax of £406,000.
The business, it added, would be acquired for total cash consideration of up to £3.5m, payable over a two-year period, £2.1m of which will be paid upon receipt of regulatory approval and the balance paid on a deferred basis which is subject to the achievement of pre-agreed performance targets.
Buckinghamshire-based EBS offers a range of financial planning services including; retirement planning, savings and investment advice, protection, and inheritance tax planning.
With three lead advisers and seven colleagues in total, EBS hold more than £135m in assets under administration. In the year ending March 2022 EBS generated revenue of £1.56m and profit before tax of £806,000, the consolidator said.
The business will be acquired for total cash consideration of up to £5.08m, payable over a five-year period. £2.75m will be paid at closing and the balance paid on a deferred basis, it confirmed.
