Attivo is getting ready to take on its first appointed representative is it looks at a new acquisition model.
Chief executive Stephen Harper said that in September his company would be taking on the first of what could be several ARs, which would allow them to gradually integrate into Attivo before selling up and retiring.
“We don’t plan to have hundreds of them, and they have to have a minimum size of £75m in assets under management and a minimum of £500,000 in turnover, but we will have a number over the next few years, which will help us grow to the £2bn target we have,” he explained.
“We don’t want to become a network, but where there is a cultural fit between that firm and our firm, and when someone runs and owns a business but isn’t quite ready to sell, it makes perfect sense to everyone.
“Getting quality people is really hard so if you meet someone who is of the quality we like, is chartered or very near to becoming chartered, and has a proposition that’s aligned to us, then it works for all of us.”
Mr Harper said under the agreement Attivo would be responsible for professional indemnity cover for the advisers, and all file checking and compliance, as well as training and competence supervision.
He said it has become difficult to find firms which are worth buying, but he said there was no pressure on him to expand the company.
“It is difficult out there, but there are no targets set for me. There is no big lump of money burning a hole in our bank account and there are no shareholders pushing me to buy. If we see a deal that’s right, we will do it.”
One of the issues hampering Attivo’s acquisition plans was the lack of financial planners who are chartered, qualified and fellows, Mr Harper stated.
He added that a lot of firms which are chartered, only have that distinction at board level.
“I don’t believe it is possible to run and own a directly regulated firm in this regulatory environment, in these investment conditions, if you are a one man band or a two man band; it’s just not possible to do it properly.”
In January 2014, Attivo announced a consolidation and acquisition strategy aiming to acquire six IFA firms that year and 12 firms in 2015, in order to reach a target of £1bn funds under management by end of 2017.
By September 2015, the firm had bought seven advisory firms that year, but has not announced any deals during 2016.
However, earlier this week Attivo did sell its Sipp and Ssas administration business to Talbot & Muir for an undisclosed amount.
