Mattioli Woods has bought Iver-based advice firm Richings Financial Management, in a deal worth up to £1.8m.
In a statement today (August 27), Mattioli Woods said it has purchased Richings for an initial consideration of £0.9m and potential further consideration of up to £0.9m, if the firm meets specific performance targets in the two years after completion.
As part of the deal, Richings' team of four staff will remain with Mattioli Woods following completion.
Ian Mattioli, chief executive officer of Mattioli Woods, said: "Not only is this transaction a great addition because Clive shares the same philosophy as us, putting client's best interests at the forefront of his advice, but it further expands our operations in the South East following our other recent acquisitions.
“We believe the broader range of products and services offered by Mattioli Woods, including our enhanced product offering to clients from the recent acquisition of investment manager Maven Capital Partners, can help build on the great outcomes Richings' clients already achieve."
Richings is a financial planning and wealth management business which was founded in 1991. It works with over 270 private client families with approximately £70m of assets under advice.
In the year ended April 30, 2021, Richings generated revenues of £0.66m with a profit before taxation of £0.34m.
Mattioli Woods said the acquisition is expected to be earnings enhancing in the first full year of ownership.
Clive Ridge, director of Richings, said: “The increasing regulatory burden and resources required to successfully run an independent financial advisory business led us to explore the options available to ensure the long-term continuity of the quality advisory service we offer our clients.
"I believe that with Mattioli Woods' more comprehensive infrastructure and larger support team behind us, Richings' clients and employees will benefit from the considerable additional resources and support now available as part of the Mattioli Woods group, enabling our team to enhance and expand the personal service our clients expect from us, while continuing to put them at the forefront of our advice. We are very much looking forward to this exciting new phase."
This purchase is the latest in the firm’s acquisition spree.
At last year's annual general meeting, Mattioli Woods said it was looking to further grow the business “both organically and through further strategic acquisitions”.
In May, the firm set out to make its "largest acquisitions to date" with the deals to buy private equity firm Maven Capital Partners and financial planning business Ludlow Wealth Management in deals worth more than £143m.
Prior to that, in April, Mattioli Woods bought Caledonia Asset Management, in a deal worth up to £1.6m.
This came only a week after it snapped up advice firm Pole Arnold Financial Management for up to £7m.
Back in February it bought Twickenham-based wealth management firm Montagu, in a deal worth up to £2.34m.