The company announced yesterday it had bought EFG Independent Financial Advisers and with this, it would form a new independent advice arm called BIA Financial Planning
Nigel Stockton, Bellpenny CEO, told FP Today: “This deal announces we are now active again in the acquisition market.”
He said: “Forming BIA gives us options and choices. We will go where the opportunity is greatest. If there is an outstanding IFA business ready to sell then we are now better able to accommodate it. Equally if the business to be bought adds to our restricted business then we will do that.”
He said: “We have previously outlined that we want to do fewer, larger deals. This is common sense after building a scale business which will increase profits in the coming years.
“Ideally now we are looking for targets and businesses that are profitable, with over 10 advisers and over £500m FUM.
“We will look at certain small deals where they make sense to integrate into our existing business, but in the main we are looking for deals that will enable us to grow significantly.
“In terms of numbers of deals – this is impossible to predict as we only buy where it makes sense for us and the firm to be purchased and most importantly their clients.”
The new BIA Financial Planning will just comprise EFG at the outset but Mr Stockton added: “You are right we are not ruling out additional acquisition into BIA going forward.”
EFG has offices in Wolverhampton, Birmingham and London and has 11 advisers who look after 800 active clients and £650m in funds under management – increasing Bellpenny's own total FUM to over £3.5bn.
Mr Stockton said: “The opportunity with EFG-IFA was such that whether it was an IFA or restricted it was worth moving to accommodate that business. You wouldn’t expect us to, and nor would we, turn down a super business opportunity because of its advice permissions one way or the other.
“Whether we make any additions to BIA Financial Planning or Bellpenny in the future will depend on the advice channel of any potential acquisitions.”
The firm expects to complete the takeover in Q1 and to be fully operational this half year - subject to FCA authorisation.