Tavistock Investments, UK-based financial services group, has entered into an agreement to buy Standard Financial Group, the holding company of adviser network Financial Ltd, for £2.7m.
The acquisition, which is subject to regulatory approval, will boost Tavistock’s adviser numbers to 324, group’s turnover to over £30m and assets under advice to over £3bn.
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The deal comprises an initial payment of £500,000 in cash for the business with the vendor buying IFA Compliance, a subsidiary of Financial, for £52,000. The remaining £448,000 will be used to repay outstanding inter-company loans owed by IFA Compliance.
Upon completion of the deal, Tavistock will provide Standard Financial with £500,000 in additional working capital, and could also provide a further £500,000, which would take the total funding for the deal to £1.5m.
Additionally, Tavistock will pay £2,000 to Standard for each adviser within Financial who will remain with the new business from the date the deal is completed until 31 March 2016.
"Whilst it is not possible to definitively state the level of assets that are currently advised upon by members of the Financial network, the Directors believe the amount to be in excess of £2.6bn," the company said in a statement.
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