MBO sees Unbiased move from provider funding
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Unbiased.co.uk chief executive Karen Barrett has completed a management buyout of the company which is moving away from product provider funding.
Unbiased announced the deal last week after a four-year strategy to wean the business off provider sponsorship.
The company is now run by an executive committee made up of Barrett and company secretary Clare Kissane. Lansons Communications chief executive Tony Langham joins as non-executive chairman. Under the terms of the MBO , the 24 current provider sponsors has a large minority shareholding in the business between them while the executive committee holds a small majority share.
Over the past 10 years, sponsors have contributed a total of £70m to fund the Unbiased campaign that promotes IFAs.
Barrett says: “We were an organisation that was 100 per cent reliant on sponsorship contributions. With all the consolidation and change among providers, it seems sensible to move to a basis where we make income from different sources, through our advertising not only with IFAs but also with mortgage advisers, solicitors and accountants.”
Income will also be generated through events and by providing services to sponsors such as access to the adviser and media databases held by Unbiased, and the Find an IFA tool.
Barrett maintains the company will not start chasing profits now it has shareholders. She says: “We will continue to be a not-for-profit organisation and what we are looking to do is build a sustainable business, so if we grow income we are growing the campaign.
“In this critical period in the runup to the RDR, we need to be talking to consumers more and more about the changes and what it means to get different types of advice and why they should seek independent advice.”
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