Financial Planning firm European Wealth looks set to take over another Financial Planning company in a £3m deal.
Greensnow Limited, which trades under the name ISM Solutions, is the subject of the proposed acquisition.

The clients of ISM are described as being “made up of predominantly young, aspiring professionals in both the legal and accountancy professions”.

ISM had turnover of £1.1 million, of which about 92 per cent was recurring income, and profit before tax of £114,986, for the full year to 31 March 2015.

The maximum fee is £3m, with 50% from cash and 50% from shares, and the final amount dependent on ISM’s performance.

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An initial £1.25 million is set to be paid. European Wealth has raised, subject to conditions, £2 million, to help fund the takeover.

This is through a placing of 2,527,095 new ordinary shares, with both new and existing shareholders at a price of 80 pence per share.

John Morton, executive chairman of European Wealth, said: "I am delighted to announce the latest phase in European Wealth's growth strategy.

“The combined fundraising, introducing new and highly supportive institutional investors into our already strong shareholder base, together with our strategic acquisition of ISM Solutions, is evidence of the robust strategy of the European Wealth Group and the manner in which it is viewed by the outside world.

“The developments announced today give us the opportunity to move forward with our growth objectives both through acquisition and organic expansion."