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Old Mutual and Intrinsic eye more acquisitions

Old Mutual Wealth and Intrinsic are planning further acquisitions after last week’s deal which sees 3,000 advisers join the investment firm.

Under the deal, 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 last week, 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?

“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 said 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 mean that would have been difficult.” 

He admits it is inevitable some members will choose to leave the network following the acquisition. But he says the firm has set recruitment targets and expects to grow net membership by around 250 this year.

Freeman said acquisitions will supplement growth in adviser numbers. 

He added: “There could be small acquisitions of 10-man firms up to three or four hundred.”

Stiddard director Jason Levett says: “By aggressively chasing acquisitions there is a risk firms inflate the price of businesses they are looking to buy, making it harder to add value.”

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