The deal, announced in September, was expected to bring £1.3bn in assets under management to Socium. The deal remained subject to final shareholder and regulatory approvals.

In a letter sent to shareholders at the end of March, Beaufort said that Socium had decided to withdraw its offer due to not being able to fit the business into its model. The letter added that it will look for another funding partner.

Socium has attempted to put speculation to bed by saying it will not comment further on why the Beaufort deal collapsed. However, the financial advice group chose to add that it is “not a consolidator” and that its strategy “is very much buy and build.”

The group also made clear it does not see itself as a network and instead sees itself as a national IFA.

When Socium acquires businesses, it allows them to retain control over day-to-day management and operations whilst offering access to capital and central resources that enable growth through acquisition.

Socium recently added three advice business, having completed deals with Shipman Financial Planning, True Bearing and Wealth Solutions UK.

This brings the total number of advisers in the Group to 55, AUA to £3.3bn and extends its regional presence to the Midlands, North West and South West.

Private equity-backed Socium is headed by Mary-Anne McIntyre, the former CEO of IFA network Openwork.

Socium has raised funding to acquire 15 to 20 hub businesses that have an EBITDA between £1m to £3m.