Employee benefits consultancy and financial advice firm Mattioli Woods has bought a Buckinghamshire-based independent financial adviser in a deal worth up to £1.8m.
The purchase of Richings Financial Management is for an initial £900,000 with a potential further £900,000 depending on meeting specified performance targets in the two years after completion.
Richings was founded in 1991 and is based in Iver, Buckinghamshire, offering protection and health insurance advice along with mortgage broking and wealth management services.
It has more than 270 private client families with approximately £70m assets under advice and employs four staff who will all remain with Mattioli Woods following completion.
According to a Mattioli Woods statement, in the year ended 30 April 2021, Richings generated revenues of £660,000 with a profit before tax of £340,000, with gross assets £350,000 and net assets £260,000.
It expects the acquisition to be earnings enhancing in the first full year of ownership.
Increasing regulatory burden
Clive Ridge, director of Richings, said the increasing regulatory burden and resources required to successfully run an advice business led to exploring potential sale options to support its 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,” he said.
Ridge added this would enable the 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.”
Ian Mattioli, chief executive officer of Mattioli Woods, added: “Not only is this transaction a great addition because Clive shares the same philosophy as us, but it further expands our operations in the South East following our other recent acquisitions.
“We look forward to working with Clive and his experienced team now that they have joined the Mattioli Woods group.”
