Succession plots 'transformational' deal

The company’s chief executive, Simon Chamberlain, said its financial performance had been so strong it had allowed him to set aside money for the deal.

This would come on top of the 10 acquisitions Succession will make from its membership - those firms that have already been brought under the Succession business model - Mr Chamberlain said.

“Now the company is so profitable we will be using some of our resources to look at a transformational deal, maybe a business with 50 or 60 [advisers] which will be acquired directly into our hub locations," he said.

“I am beyond talking to four or five companies. It is now a question of choosing which one would suit our environment.

“In those big national firms there are a lot of transactional advisers and we are not a transactional firm, we are service-led.”

Mr Chamberlain said the first acquisition from its membership would be completed this month and would give Succession a “hub location” along the M4 corridor.

The other nine acquisitions are having the contracts finalised.

Mr Chamberlain dismissed claims that the pace of consolidation may slow, saying there are still 13,000 advice firms in the UK to be bought.

He said: “Most consolidators have run out of money and most models are flawed, so they come up with excuses.

“I don’t know any other consolidator apart from Succession that has not come under financial pressure.

“We are still the only consolidator that does the consolidation work before we acquire the firm.”

He said the most expensive part of the consolidation process was the integration of one firm into another.

Last year Succession secured an investment package of more than £25m from HSBC and its existing shareholders, to continue its growth strategy of acquiring the best 50 firms from its affiliated membership by the end of 2017.

Mr Chamberlain added that the "streamlined advice" which Succession was hoping to offer to clients with less than £100,000 was currently being trialed.

damian.fantato@ft.com