Independent financial advice firm Sterling McCall is set to gain three advisers and £150m in assets under management after it agreed terms to acquire two firms.
Although Sterling McCall operations manager Steve Moseley would not name the firms until the deals are finalised, he told FTAdviser they are based in Grimsby and Nottingham and will bring his firm’s total regulated AUM to more than £420m.
Each of the firms have two IFAs, each of which will join Sterling McCall save one who is choosing to retire. Following the acquisitions the firms will conduct business out of Sterling McCall’s existing offices in Kegworth, between Derby and Nottingham.
According to Mr Moseley the deals will increase his firm’s turnover to £3.7m while maintaining its ratio of recurring income at 62 per cent.
These are the latest deals in what has been an acquisitive year for Sterling. In April the firm’s holding company Cornerstone Asset Holdings Limited bought Grimsby-based IFA Sutcliffe Solloway Financial Planning, bringing £35m AUM and 500 new clients to the firm.
Mr Moseley later (28 May) told FTAdviser he was in talks to buy three firms which he claimed would double the company’s AUM and bring in a total of 10 new advisers.
The run-up to and aftermath of the Retail Distribution Review set the stage for a scramble of IFA acquisitions.
In July, West Country-based Stafford House Investments acquired Somerset-based AC Mole Financial Services. In May, London IFA Bradbury Hamilton bought two client books comprising 450 clients and £35m AUM from Ford Reynolds and Associates Limited.
In February, Sanlam Private Wealth bought the client banks and combined £97m AUM of Safetrend and Berkeley Associates Financial Planning as part of its strategy to increase its wealth management presence in the UK.