Positive Solutions founder David Harrison has hit out at the current management team for criticising the work of their predecessors.
Harrison launched PosSol in 1997 with staff and management selling a 60 per cent stake to Aegon in 2002 and remainder to the provider in 2005, valuing the business at £163m. Harrison then set up technology firm True Potential with son Daniel and former PosSol chief executive Neil Johnson.
Following the acquisition, PosSol chief executive Peter Coleman said his team had worked hard to “resurrect the fortunes of Positive Solutions” and produce a “remarkable financial turnaround”.
Harrison says: “The current management should show a bit of humility and not look to criticise previous senior staff”.
He added: ”I have always felt that the value in PS was with its IFAs, and AEGON clearly felt that as well considering the price they paid for us. For clarity, the sale was made way back in 2002, with an earn-out over 3 years.
”In recognition of their value, the money paid over was shared between 800 advisers and staff, not just paid to a management team that had built it from scratch, using their own savings, and paying themselves very frugally to give it a chance to thrive.”
Positive Solutions appointed former Burns Anderson director Coleman as chief executive in February last year following Jim Reeve’s departure. Former Honister chief executive Richard Pearson was appointed chief operations officer last June.
Following two years of losses, PosSol posted a £2.3m pre-tax profit for 2012, although it reported a number of possible advice liabilities.
Positive Solutions declined to comment.
Full coverage of PosSol/Intrinsic deal, p16-17