Supporting the sale of Fortitude to Perspective Financial Group

Introduction:

Fortitude Financial Planning Limited was an independent financial advisory firm based in Towcester, Northamptonshire. The shareholders agreed to sell the entire issued share capital of the company to Perspective Financial Group, a national consolidator of financial advice businesses, as part of Perspective’s continued expansion within the UK wealth management sector.

Target objective:

The shareholders sought to realise value from the business while ensuring continuity of service for their clients and advisers. The objective was to complete a structured sale to a well-established national platform capable of integrating the business while managing the regulatory and operational complexities associated with IFA consolidation.

Action:

Devonshires advised the shareholders of Fortitude Financial Planning throughout the transaction, including negotiating the heads of terms, managing the legal due diligence process and drafting and negotiating the share purchase agreement and related transaction documentation.
The deal was structured around a valuation based on a multiple of maintainable EBITDA, with consideration comprising a combination of completion payments and deferred earn-out consideration linked to post-completion financial performance.
Our team also advised on regulatory aspects of the transaction, including the FCA de-authorisation process for the firm and the transfer of client relationships onto Perspective’s national platform. We worked closely with the client’s accountants and compliance advisers to ensure the transaction progressed efficiently.

Results:

The transaction completed successfully, enabling the shareholders to realise value for the business while ensuring a smooth transition of clients and advisers into Perspective’s national network. The acquisition formed part of a group of transactions that took Perspective Financial Group past the milestone of 100 acquisitions.

Miscellaneous:

Fortitude Financial Planning operated from offices at Selby Barns, Duncote, Towcester in Northamptonshire. The acquisition was reported across financial advice sector publications and formed part of a series of deals completed by Perspective that collectively added approximately £1bn of assets under advice and more than 2,500 client households to the group.