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Shareholder successfully advised as financial firm is acquired

Chris Blantern and Daniel Bisby have successfully advised the shareholder of Marchant McKechnie, an independent financial advisory firm, on its recent acquisition by KW Health.

Listed firm KW Wealth, an integrated wealth management group, has received full approval for the deal with the Beverley-based company after receiving FCA approval.

Last year, Marchant McKechnie generated profit after tax of almost half a million pounds. The deal will bring an additional annual revenue of over £1.4 million to KW Wealth, subject to regulatory approval.

The total maximum consideration payable for the acquisition is £4m. This consideration comprises an initial cash payment of £1.6m with a deferred sum of up to £2.4m. This is payable in cash or, at the seller’s request and Kingswood’s agreement, Kingswood shares, subject to certain revenue metrics being achieved over the next two years.

For the year to 31 December 2017, Marchant McKechnie generated EBITDA of £855,000, meaning the acquisition has been completed at a valuation of 4.7x 2017 EBITDA. For the same period Marchant McKechnie generated profit after tax of £499,000. The acquisition is expected to be immediately earnings enhancing to the Group.

Based in East Yorkshire, Marchant McKechnie offers a wide range of services to its clients, including personal and company pensions, investments, and tax planning. Marchant McKechnie serves around 700 clients and has about £200m of assets under advice (AUA).

Following the acquisition, the Group will have over £2bn of AUA, 20 financial advisors and more than 4,000 active clients. Marchant McKechnie will continue to operate from its existing office in Beverley and will become KW Wealth’s seventh regional office in the UK, after London, Manchester, Cheltenham, Maidstone, Brighton and Worcester.

The acquisition is part of KW Wealth’s strategy to become a leader in the UK wealth management market and represents the Group’s first acquisition since the rebrand from European Wealth in September 2018.

Daniel Bisby, Corporate Solicitor, said: “As a local legal firm we take pride in supporting successful regional businesses to grow and it’s great to be involved in helping the shareholder of Marchant McKechnie."

He added: "We were delighted to be able to offer our council and expertise to ensure the deal was completed successfully and smoothly."

 

About the Author

Daniel Bisby

Solicitor

Daniel advises on a wide range of transactions including acquisitions and disposals (of both shares…

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