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MBO at Key after clash with parent

Key Retirement Solutions has initiated a management buyout from parent company Chesnara, formerly Countrywide, following differences over strategy.

The four members of the board who have set up the £2.8m deal are managing director Colin Taylor, business development director Dean Mirfin, operations director Paul Wilson and sales director Richard Overson.

They have all invested private money into the company, with no external capital.

The buyout will enable KRS to build on its position in the equity-release market and pursue its expansion plans.

Taylor says the relationship between KRS and Chesnara had changed in recent years, with Countrywide increasingly focusing on its estate agency and property services business, leading to the demerger and separate listing of Countrywide and Chesnara in May 2004.

Chesnara retains ownership of Countrywide&#39s closed life fund but has just outsourced its admin to Marlborough Stirling.

KRS has an 18-month plan to double its current force of 45 advisers and to expand by about 15 per cent in the next two months. It has an annual turnover of more than £5m.

Taylor says: “We have been working on and planning this for about two years. The strategy of the parent company had changed and it was in competition with our philosophy.

“Our main plan is to remain with our core business – equity release, financial advice for retired clients, estate planning and long-term care. We would like to try and educate the public about immediate care and pensions and a mass of people could also benefit from inheritance tax planning. There is lots of educating to be done.”


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