Tavistock Investments has bought Price Bailey Financial Services as a wholly owned subsidiary, in a deal worth up to £3.6m.
PBFS is the independent financial advice arm of Price Bailey LLP, a firm of chartered accountants with offices in London, Bishop’s Stortford, Cambridge, Ely and Norwich.
It employs eight advisers and 14 support staff and brings with it approximately £313m of funds under advice, including £166m of funds under management on a discretionary basis.
James King, a partner at Price Bailey Financial Services, said: “Price Bailey has been searching for over two years for the right partner to help develop our financial services business and I am delighted that we have now agreed this transaction with Tavistock.
“Tavistock has committed to work with me to expand the business and I’m very much looking forward to working with the Tavistock team for the benefit of our customers”.
After the deal goes through PBFS will continue to share offices with, and benefit from, client introductions from Price Bailey.
In unaudited accounts for the year ending 31 March 2016, PBFS reported earnings before interest, taxation, depreciation and amortisation of £391,000 on turnover of £2.1m.
The vendors of PBFS have contracted to deliver a minimum of £500,000 of net assets with the business at completion.
The fixed initial consideration for the transaction is £3.6m, with a payment of £2m in cash and the issue of 21,263,462 ordinary shares at a deemed price of 4.4678p per share on completion.
This is together with a fixed second payment in cash upon the first anniversary of completion of £150,000 and a further variable second payment in cash upon the first anniversary of up to £500,000.
Brian Raven, chief executive of Tavistock Investments, said: “Price Bailey is an award winning, profitable firm with an excellent reputation.
“We’re delighted to welcome James King and his team to the group and we look forward to building a substantial business together, looking after higher net worth clients and maintaining a long term partnership with Price Bailey and its clients.”
