Tavistock Investments has agreed to acquire a 21% holding in an independent financial advisory group LEBC, which operates three wholly-owned subsidiaries.
Tavistock is purchasing the 212,738 ordinary shares of £0.01 each for £10m from Marie McVitie, the widow of LEBC founder and former CEO Jack McVitie.
The company said that it will pay £6m of the consideration upon closing and £4m twelve after the completion of the deal.
As per the Financial Conduct Authority (FCA) rules, Tavistock will become a ‘controller’ in two of the LEBC’s regulated subsidiaries, namely LEBC Group and Aspira Corporate Solutions, following the stake purchase.
LEBC Hummingbird, another subsidiary of LEBC, is not regulated by the FCA.
Established in 2000, LEBC provides financial planning and consultancy services to private and corporate clients.
The firm currently has 46 financial planners, more than 75,000 clients, and manages around £5bn in assets under advice.
It had £9.6m in gross assets and £5.6m in net assets as of 30 September 2021.
Tavistock chief executive Brian Raven added: “We look forward to working in close partnership with B. P. Marsh & Partners and with LEBC’s management team.
“The initial focus will be on accelerating LEBC’s commercial development and operational efficiency, as well as enhancing its oversight and compliance regime through the introduction of Tavistock’s proprietary risk-based processes and procedures.”
LEBC managing director Derek Miles added: “We are delighted to welcome Tavistock as a shareholder within our rapidly growing business. We expect EBITDA to more than double this financial year and look forward to a long and successful partnership with Tavistock, to our mutual benefit.”
P. Marsh & Partners (BPM) is the largest shareholder of LEBC with 60% of its voting rights.
Commenting on the deal, BPM chairman Brian Marsh said: “We welcome Tavistock as an investment partner in LEBC and look forward to working closely together to accelerate the development of the business.”