M and A
UK Advisor Network Rolls Out M&A Programme

A UK financial advisor network has rolled out a buy-and-sell scheme for its members in a fresh twist on the kind of M&A action being seen in the space.
Financial advisors inside Intrinsic, the network that is part of Old Mutual Wealth, can now get advice from Intrinsic on how to buy or sell their businesses, tapping into a continued shakeup of the IFA sector as new rules reshape the industry.
The practice buyout scheme connects appointed representatives of Intrinsic, or Positive Solutions, a network IFA business bought by Intrinsic in 2013, that want to sell their business with others that want to bulk up through purchases. (Intrinsic has been part of Old Mutual Wealth since 2014.)
As part of the offer, advisors will, because of Old Mutual’s financial backing, be able to borrow from Intrinsic at “preferential rates” to fund purchases. The rate is set at LIBOR + 3 per cent, a spokesperson for Intrinsic said, when asked what “preferential” meant by this publication.
The development highlights how, in the wake of regulatory overhauls such as the UK’s Retail Distribution Review, and other changes, there has been a ferment of merger and acquisition activity in the UK. One trend is that of advisors nearing retirement who, rather than face the burden of new rules, have sold up, while others have entered networks to share costs and others have acquired to obtain scale.
Sellers and buyers must be part of the Intrinsic network to be eligible for the scheme and buyers must have been appointed representatives for at least three continuous years, whilst sellers must have been part of Intrinsic or Positive Solutions for at least five years.
“We know that for many advisors nearing the end of their career, securing an appropriate exit strategy that ensures their clients are well looked after is an important priority. Our practice buyout scheme represents an opportunity to agree a sale with another member of the Intrinsic network that is looking to grow their business through acquisition,” said Andy Thompson, distribution director at Intrinsic.