Under the deal, announced this morning, Intrinsic will retain its brand and management team. Skandia’s protection products will be added to Intrinsic’s panel for its mortgage and protection advisers and its platform will be added to Intrinsic’s platform panel.
Speaking in a press briefing following the announcement, Old Mutual Wealth chief executive Paul Feeney said the businesses would look to make further acquisitions together.
Feeney said: “We have discussed this and if there are other high quality opportunities why would we not look at those opportunities?
“I am not just talking about scale but about quality. We have chosen Intrinsic for scale and reach but also the quality of the management team. If there are other deals to be done it would be done via Intrinsic.”
Intrinsic chief executive Richard Freeman says further acquisitions would have been unlikely without the backing of a more heavily capitalised organisation.
He said: “We have still got growth plans and acquisition is part of that. But standing alone our resources meant that would have been difficult.”
He admits it is inevitable some members will choose to leave the network following the acquisition by Old Mutual Wealth. But he says the firm has set recruitment targets and expects to grow net membership by around 250 this year.
He says acquisitions will supplement growth in adviser numbers in future.
Freeman adds: “There could be small acquisitions of ten man firms up to three or four hundred.”
Intrinsic acquired Positive Solutions in June, adding 850 advisers and increasing its total adviser headcount to around 3,000.