Deals Of The Day: The Latest In Wealth Management M&A

Editorial Staff

10 August 2018

Mattioli Woods
UK wealth manager has acquired the entire issued share capital of Broughtons Financial Planning for around £4 million ($5.2 million).

Based in the West Midlands, Broughtons was founded in 2001 and provides wealth management advice and administration for 250 individual clients with over £120 million of assets under advice.

Broughtons' management team will be retained by Mattioli Woods following the acquisition, which is expected to be earnings enhancing in the first full year of ownership.

The total consideration comprises:
- An initial consideration of £2.7 million (subject to adjustment for the value of net assets acquired), comprising £2.1 million in cash plus 77,171 new ordinary shares of 1 pence each in Mattioli Woods, which are valued at £600,000 based on the closing price of a Mattioli Woods share on 8 August 2018; and

- Deferred consideration of up to £1.3 million payable in cash in the two years following completion, subject to certain financial targets being met based on growth in earnings before interest, tax, depreciation and amortisation generated during that period.

Payment of the initial cash consideration, deal costs and estimated net asset adjustment resulted in a cash outflow at completion of £2.2 million.