CompaniesMar 2 2015

Succession completes 13th acquisition for £1.5m

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

National wealth manager Succession Group has completed its 13th acquisition, buying Southwick-based Cassidy Coutts Donald and Partners for a total consideration of £1.5m.

The firm joined Succession as a member firm in September 2012 and has now completed the series of ‘expectations’ that come as part of the staged buyout model that see a minority stake turned into a majority shareholding.

Cassidy Coutts was established in 1993 and is a tax planning and investment specialist with £50m funds under management.

The acquisition is still subject to Financial Conduct Authority approval, but Cassidy Coutts managing director David Butler commented that he was confident the integration will be a smooth transfer, as they already use the same systems and processes.

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, Succession acquires the share it does not own, to provide an exit for the owner.

Last year, Simon Chamberlain, chief executive of Succession, said he plans to “fund the acquisition of the best 50 firms with £7bn of assets by the end of 2017 from our growing membership”.

Mr Chamberlain also said he has recently seen “significant interest” from those firms considering their own succession-plans post RDR.

“We will continue our structured acquisition to buy the best 50 firms, with £7bn of assets, by the end of 2017, from our growing membership, that have completed our comprehensive transition programme, designed to maximise the volume of recurring income and improve sustainable income.”

At the end of January the group acquired its 12th member, Reading-based Finch Financial Services, for a total consideration of £3m.

peter.walker@ft.com