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IFA Valuations
28
Jan

Quilter plans £20m acquisition expenditure

Quilter has revealed it intends to spend £20m on acquisitions in 2020. While the firm completed large acquisitions in 2019 (such as Charles Derby and Lighthouse), Quilter is also looking out for smaller purchases. Darren Sharkey, Managing Director of Quilter Private Client Advisers, commented on Quilter’s M&A strategy: “Quilter Private Client Advisers now has six offices across the UK, and we have predominantly grown that business through a number of smaller acquisitions of advice businesses and client banks from retiring advisers.

Gunner & Co. work closely with Quilter on their acquisition strategy. If you would like to understand more about their proposition for business sellers contact joshua.lee@gunnerandco.com

“As we have been building that proposition, we typically spend about £20m per annum. It usually involves either smaller regional advice businesses or individual client banks of advisers who are retiring and leaving the market.”

Charles Derby, which was acquired by Quilter last year, recently rebranded as Quilter Financial Advisers. Sharkey said: “The focus for us as a business for the foreseeable is to integrate the businesses we acquired last year and to continue the ongoing investment of acquiring smaller advice businesses and client banks into both Quilter Private Client Advisers and Quilter Financial Advisers. We will continue acquiring but they will be smaller in nature.”

“We will continue to observe the market and sometimes opportunistically things come up which may encourage us to look to acquire, but our plans are not to do so in the short-term.

“We already set the advice standards and perimeters that Charles Derby had to adhere to. We didn’t have to change any of that, we were comfortable with the quality of advice given. We have changed part of the proposition though. Advisers now operate with a single tie to the Old Mutual Wealth platform where previously they had operated to a restricted platform panel. And we have added elements to the investment proposition, but they are kind of business as usual enhancements, I would say.

“If you are an adviser that was working for Charles Derby prior to the acquisition or since, it will, for the most part, feel very similar.”

“We spend around £20m per annum on smaller acquisitions and we continue to expect to spend that per annum for the foreseeable future.

“That gives you a sense of our level of appetite for acquisitions going forward.”

Gunner & Co. work closely with Quilter on their acquisition strategy. If you would like to understand more about their proposition for business sellers contact joshua.lee@gunnerandco.com