An overview into the Financial Advisory marketplace combined with some war stories around getting deals done and lessons learned!

Financial Advisory

Financial Advisory



Expert: Dave Robson - Carmignac 

Moderator: John Chapman - John Chapman Consulting

Key Findings

Lots of people are buying, for many different reasons and there are lots of challenges involved.

  • Towry/Tilney Best Invest were both private equity driven - they were in for a long period of time whilst more recent private equity deals are looking for a shorter a return. 
  • Robo Advisers are finding it difficult to engage with clients and are looking to buy distribution. The Almary Green deal fell over as going from independent to restricted meant Advisers left and 1825 pulled out. The most important thing is to get the culture of the businesses aligned.
  • Brown Shipley have bought two quality businesses, Fairstone and Succession,  raising capital to expand further. 
  •  Old Mutual (for assets), Close Brothers, SJP by stealth - very quiet about it. Succession bought Clay Rogers. Bellpenny has changed - they were previously buy and build but now are acquiring much larger businesses so they can be sold on. 

Four metrics: 

  • Total Revenue 
  • Recurring Revenue 
  • Profitability 
  • AUM  

Other metrics:  

  • Quality of assets / platform 
  • Quality of process / including post transaction structure 
  • Quality of governance and controls 
  • Better value if there is a CIP and even better with DFM process
It is important to get a solicitor and accountant involved as well as a corporate adviser for warranties and indemnities, along with a disclosure 
Using multiple valuation methods is important, it is benficial to blend.