Quilter  

Quilter rejects vast majority of adviser deals

 

Quilter only buys 7 per cent of the advice firms it eyes for acquisition, a director at the advice giant has revealed.

Dominic Rose, strategy and acquisitions director at Quilter Private Client Advisers, said there were a number of things that made a business stand out when the company is looking to acquire it.

Mr Rose said: "Demand for advice businesses is increasing, but as is the supply. From a Quilter perspective we only acquire 7 per cent of the businesses that we talk to."

The acquisitions director said before entering into the sales process businesses owners should be clear on what they need to achieve from a transaction and "clearly articulate" it to the buyer. 

This will help the buyer understand what the seller is looking for and aid the valuation and decision process, Mr Rose said.  

He also said Quilter will check whether a firm follows a consistent advice, service and investment proposition and that it is followed by its advisers. 

Mr Rose added: "The other dull area I'm afraid is around a sensible compliance record and history and a good conduct risk framework.

"The key theme there is 'dull is good', frankly. The more esoteric or more high risk the investment the business has, the less attractive it is to a buyer."

Quilter has completed a number of high-profile acquisitions this year, namely its £46.2m deal to buy advice company and network Lighthouse in June and the purchase of financial planning firm Charles Derby in February. 

The latter quadrupled the number of advisers at Quilter Private Client Advisers at the time. 

rachel.mortimer@ft.com 

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