Succession is lining up three acquisitions next month following the news it has sold a majority stake to a private equity firm Inflexion.
Succession announced yesterday Inflexion has taken a 50.1 per cent majority stake in the company. The remaining 49.9 per cent is owned by discretionary fund manager Spearpoint and Succession management, who both take a diluted shareholding following the deal.
The deal to sell a stake in the firm will see Inflexion provide financing for future acquisitions, with ten planned in 2014. Group chief executive Simon Chamberlain says the investment will help finance the £140m he says will be needed to acquire 50 member firms overall.
Succession operates an acquisition strategy based on acquiring member firms once they have integrated Succession’s processes and criteria.
Chamberlain says: “Our plan is to get to £110m of turnover, compared with £65m today, and if we achieve that I believe the company will be worth far in excess of £500m.
“Having a majority shareholder with the credentials of Inflexion demonstrates the power of the Succession model. We came into the marketplace less than five years ago and today we have 62 member firms which advise on £8bn of assets.”
He adds: “As Inflexion made its investment we completed the deferred consideration payment for the first five acquired firms. The next three are lined up to be acquired in the next month.”
Last August Succession announced the acquisition of London-based Smart Wealth Management, Glasgow firm Campbell Dallas Financial Services, Amersham-based The Financial Management Group, Westminster Financial Planning and Westpoint Financial Consultants in Plymouth.
It agreed a combined fee of £12m for the five businesses.