Succession has confirmed the £10m acquisition of advice firms Lewis Chambers and Plan4Wealth, within six months of the pair joining as Succession Group member firms.
Chambers Group, trading as Lewis Chambers, along with its Plan4Wealth arm bring more than £200m funds under management to Succession Group.
Lewis Chambers managing director Mark Stokes said: "The cultural fit was far more important than the deal price, to ensure our clients, staff and stakeholders would be as comfortable with Succession as they have been with Lewis Chambers and Plan4Wealth."
Last year Succession secured an investment package of more than £25m from HSBC and its existing shareholders to accelerate its growth strategy through the acquisition of 50 firms from its affiliated membership by the end of 2017.
The firm's group chief executive Simon Chamberlain (pictured) took the opportunity to restate plans to capitalise the business in 2018 with a trade sale or a main-market initial public offering.
Lewis Chambers joined joined Succession with a view to being acquired in September 2016. Succession takes on firms as members before acquiring them, ensuring they are fully integrated into the group's model first.
Talking more on this approach, Chamberlain said: "As a firm, your cultural change comes before acquisition. There are firms that complain there is nothing left to acquire, which is rubbish - they have just run out of money. They've run into a brick wall, having spent all the money on the acquisition with nothing left for the hard work of consolidation."
As for how Succession fits in the advice market alongside networks, Chamberlain argued groups such as his offer more opportunity for business growth."There is a massive issue building up in the networks," he said.
'Elephants' graveyard for IFAs'
"They are an elephants' graveyard for IFAs if they want access to capital because they're making their business impossible to acquire. Ours is a disruptive message in the marketplace - big advice firms are taking control of the food chain."
Succession Group wealth planner and former Clay Rogers & Partners managing director Mark Rogers said: "There is a distinct lack of trust from business owners towards consolidators as, if it runs out of money, it is the acquired business that deals with the fall out. This is what motivated us to sell to Succession - knowing it is well-run and well-capitalised."
Chamberlain added that Succession would never buy a network member, which he believed to be the same for all consolidators. He also shared the group's planned changes for its platform. Accessed through its wealth planning technology Succession Connect, clients will no longer see the platform, creating the opportunity to access a number of platform solutions.
The chairman isn’t answering his email
Reforms not enough
An economic cocktail
To encourage consumers to shop around
Will report to Pat Shea