Mattioli Woods has announced the acquisition of 100% of the share capital of Richings Financial Management for an initial consideration of £900,000 and a potential further consideration of up to £900,000 if the firm attains specified performance targets in the two years after completion.
Founded in 1991, Richings is a financial planning and wealth management business working with over 270 private client families with approximately £70m of assets under advice.
The firm is based in Iver and has a four-strong team, including director Clive Ridge, all of whom will remain with Mattioli Woods following completion.
The acquisition will consist of an initial consideration of £0.9m cash on a cash-free, debt-free basis, and a second contingent consideration of up to a further £0.9m payable on the first and second anniversaries of completion, if the firm reaches certain profit targets.
In the year to 30 April, Richings generated revenues of £660,000 and a profit before tax of £340,000. Its net assets at the time were £260,000.
Mattioli Woods said the acquisition is expected to be earnings enhancing in the first full year of ownership.
Ian Mattioli, CEO of Mattioli Woods, said: "Not only is this transaction a great addition because Clive shares the same philosophy as us, putting client's best interests at the forefront of his advice, but it further expands our operations in the South East following our other recent acquisitions.
"We believe the broader range of products and services offered by Mattioli Woods, including our enhanced product offering to clients from the recent acquisition of investment manager Maven Capital Partners, can help build on the great outcomes Richings' clients already achieve.
"We look forward to working with Clive and his experienced team now that they have joined the Mattioli Woods group."
Ridge added: "The increasing regulatory burden and resources required to successfully run an independent financial advisory business led us to explore the options available to ensure the long-term continuity of the quality advisory service we offer our 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 as part of the Mattioli Woods group, enabling our 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."