Wealth manager Mattioli Woods has purchased the entire issued share capital of West Midlands-based Broughtons Financial Planning from its shareholder.
Established in 2001, Broughtons offers wealth management advice and administration. The business posted pre-tax profit of £620,000 and revenues of £990,000 for the year ended 31 July 2017.
The deal adds 250 clients and more than £120m in assets to Mattioli Woods’ portfolio. It is expected to be earnings enhancing in the first year.
Broughtons managing director Gary Bond said: “From our initial discussions with Mattioli Woods it was clear that we shared the same values and business culture.
“We are all excited by the opportunity this gives us as we work to create a great financial services business and to be part of a large group which has clients at its core.“
Mattioli Woods will pay a total consideration of £4m for the deal. This includes an initial payment of £2.7m and a deferred payment of £1.3m based on the fulfilment of certain performance targets.
Broughtons will continue to operate with its existing management team.
Mattioli Woods CEO Ian Mattioli said: “Broughtons has a similar culture to Mattioli Woods and holds high values with the client being at the core of all it does. The combined business gives us all opportunities to grow and develop the client offering and we welcome Gary and his team.”