Financial Services Sector

The South East is the home of entrepreneurial financial services businesses whether in insurance broking or underwriting, independent financial advice or wealth management. The sector can expect further consolidation in the current market and cross-over between key segments. Larger players in the sector are supporting higher prices for the right businesses.

We offer advice to provide the right solutions for entrepreneurs, differing shareholder objectives and the ability to fund the growth and strategic partnership of these businesses.

The Argentis Financial Management Transaction is an example of where an entrepreneur required a private equity or strategic investment alternate to a predatory trade approach. A relatively young but profitable business with a very strong growth story. Some shareholders wanted to take the cash, others wanted to hold on for greater reward. We structured and arranged alternative opportunities which mirrored the financial consequences for the shareholders who wished to exit yet offered further growth for the shareholders who didn’t, whilst identifying a strong strategic and synergistic partner and investor that could accelerate the growth. We will retain an interest in progressing the business to the remaining shareholders' eventual exit.

More recently, the sector, especially around financial planning and wealth management is beginning to show signs of some considerable change. Profitability is down due to the fall in funds under management or influence, but the stronger business models will prevail.

Unusually, there are both consolidation and deconsolidation opportunities! Good businesses will likely still attract good prices (perhaps above expectations for the underlying asset values under management or influence), but the over-geared consolidations may creak and possibly crack under the pressure. An interesting mix of buy-side and sell-side opportunities, possibly even MBOs, in a sector that has not seen so much private equity penetration.

 

Financial Services Transaction Examples:

• Argentis Financeial Management Limited Equity Release & Restructuring
• Genesis Guaranteed Merger
• Acquisition of Lawshare