Mattioli, which is also based in Leicester, will pay £4m initially and a further potential sum of up to £3m depending on the performance targets being reached in the two years after completion. 

Pole Arnold was set up in 2012 and has 360 private and corporate clients and about £245m in assets under management and advice.  It has 16 staff, all of whom will remain with Mattioli Woods following completion of the takeover.  

Like Mattioli Woods, the business specialises in the provision of fee-based financial planning, with the businesses complementary product offerings providing scope for potential revenue synergies, whilst maintaining the strong cultural commitment of both companies to putting clients first. 

In the year ended 31 March 2020, Pole Arnold saw revenues of £2.11m with a profit before taxation of £0.81 million.  At 31 March 2020 Pole Arnold's gross assets were £1.12 million and net assets were £0.63 million, including £0.96 million of cash.  The acquisition is expected to be earnings enhancing in the first full year of ownership.

Mattioli Woods will pay £4m initially with £3.5m in cash and £0.5m in Mattioli Woods shares. A contingent sum of £3m, will be paid if profit targets are reached.

Ian Mattioli, chief executive officer of Mattioli Woods, said: "We are delighted to welcome Mike and his experienced team as part of Mattioli Woods.  I have known Mike for many years and admired how he and his team have grown a great business, built on a strong client-focussed culture and a commitment to going the extra mile.  The transaction expands the group's presence in both Leicester and London, underlining our commitment to continuing growing both organically and by acquisition."

Mike Pole, Pole Arnold's managing director, said: "We are very proud of our team and the quality of service and advice that we provide to our clients.  The increasing resources and regulatory burden needed to run a professional advisory business led us to explore options to ensure the long term continuity of our quality advisory service to our clients.  

“With a larger and more comprehensive infrastructure and support team behind us with shared values and culture, we can achieve the economies of scale to keep down the spiralling costs of regulation and compliance.

"When we set up Pole Arnold Financial Management many years ago, the objectives were to provide a quality Financial Planning advice business and to build long term relationships and friendships with our clients and our professional connections.  We discounted a number of possible partner firms as we found only one truly shared our client and staff focussed values.  We have known a number of the senior management team at Mattioli Woods for 25 years, and given their successful track record we are looking forward to joining forces with them to achieve our objectives and to secure our advisory services to our clients.”

Mr Pole and co-directors Mike Nevill, Rob Bunting and Richard Todd will continue to work in the business.

•  Mattioli Woods chief executive Ian Mattioli was appointed High Sheriff of Leicestershire for 1 year on 29 March. It is an independent, non-political, Royal appointment for a single year designed to support the local community. He plans to raise funds for charity and and promote the local area.