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Somerset IFA swoops on local firm to gain £15m boost

Somerset IFA swoops on local firm to gain £15m boost

Weston-super-Mare-based Fiveways Financial Planning has boosted its assets under advice to £65 million with the acquisition of nearby IFA Harrisons Financial Advisers.

Somerset-based Harrisons has around 1,900 clients, of which 400 are active, and £15 million in assets under advice.

Harrisons director Neil Harrison is retiring as an adviser but will join Fiveways as a client relationship manager to help ensure a smooth transition.

Fiveways director Chris Gilchrist (pictured) said Harrisons appealed as an acquisition due to its lack of potential liabilities. ‘There’s no unregulated collective investment scheme, no Keydata or Arch Cru,’ he said.

Gilchrist said Fiveways had not paid a lump sum for the firm and the eventual price of the acquisition depended on earnings.

‘It’s an earn-out deal, there’s no upfront payment changing hands, it’s based on ongoing income from clients rather than any initial fees,’ he said.

Gilchrist said Fiveways would make more acquisitions if the right opportunity presented itself.

He said he expected there to be more firms like Harrisons coming onto the market as advisers realised theretail distribution review (RDR) required more of them than just becoming qualified.

‘From what we’ve heard, there are a lot [of advisers] who have done QCF level four but they don’t have an RDR-ready proposition,’ he said.

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