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Tavistock continues expansion with £500k deal

Tavistock continues expansion with £500k deal

Listed adviser sector consolidator Tavistock Investments has today (6 May) announced that it has acquired Duchy Independent Financial Advisers in a deal worth ultimately up to £500,000.

The firm, with offices in Truro and St Ives, Cornwall, has become a subsidiary of Tavistock Partners, the Tavistock Investments’ advisory business. Tim Mears, managing director of Duchy will head up Tavistock’s new regional operation in the south-west.

The initial consideration for the transaction comprises of £220,000 in cash and £130,000 through the issue of new ordinary shares of 1p each, at an issue price of 7.5p per share. Depending on various performance criteria, a deferred consideration of up to £156,000 is also payable.

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The firm said that under certain circumstances, if the company’s share price has not risen to 7.5p by May 2017, a further adjustment consideration may be payable by Tavistock Investments, either in cash or further shares. Currently the share price is at 2.46 pence.

Duchy’s unaudited management accounts for the twelve month period to 5 April 2015 indicate that it had net assets of £195,000 and had achieved a profit before tax in the period of £182,000.

Tim Mears, Duchy’s managing director, said: “I’ve been looking to find the right partner for some time and have had discussions with several parties.

“Tavistock impressed me as the best option, not just for me, but also to secure the potential for an eventual retirement exit for our advisers.

“Their business model is impressive and they place a strong emphasis on customer care. I’m looking forward to working with them to expand the group’s operations in the south-west.”

ruth.gillbe@ft.com