Succession completes latest member firm buyout for £3m

Succession operates a staged buyout model that sees firms join first as members, at which point the group acquires a minority stake and sets out a series of ‘expectations’. When all of these have been met, the firm acquires the share it does not own, to provide an exit for the owner.

Hart Financial joined Succession Group as a member in January 2012 with a mandate to rapidly implement the consolidation model in readiness for acquisition, according to a statement from Succession.

The group added that it is on target to acquire the best 50 firms from its membership with £7bn of assets by 2017. Simon Chamberlain, chief executive, said it plans to make one buyout a month, with the average acquiree having around £1.5m turnover.

As at May when Buckinghamshire-based Clearwater Wealth Management and West Yorkshire-based Coleman Clough joined, the group comprised of around 60 members. Last month three more members were acquired.

At that time, Succession Group completed the purchase of Hertford Doe and Davies LLP, trading as Target Wealth Management, for a total consideration of £4.9m.

Mr Chamberlain said: “Our proven client-centric model enables firms to build scale, develop compelling client propositions, as well as creating sustainability and profitability, and capturing shareholder value.

“We remain on target to rapidly acquire those businesses that have completed our comprehensive transition programme and use that scale in the market place to enhance the client experience.”

Keith Hartland, managing director and senior adviser at Hart Financial, added: “We committed to implementing Succession’s transition programme within three months to ensure we were operating at our optimal level and to prepare for a seamless transfer.

“Throughout the process we had specialist hands-on support from the Succession team matching our own commitment to completing the programme.”