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Succession exit event delayed by years

Succession exit event delayed by years

Consolidator firm Succession has delayed its plans for a float or sale for three years, New Model Adviser® understands.

According to industry sources the schedule has changed from a 2018 exit event to one in 2021.

The consolidator's original chief executive, Simon Chamberlain, who passed away in March 2017, promoted the company’s aim to have acquired 50 firms by the end of 2017, accumulate £7 billion of assets under management for the platform business and then float or sell soon afterwards, by the end of 2018.

When the firm purchased two IFAs at the end of last year  it brought the total number of acquisitions between January 2014 and 31 December 2017 to 47.

One source close to the company explained the change in strategy would likely be down to getting the right price for Succession’s private equity majority shareholder, Inflexion.

‘Succession has been making steady progress with buying businesses and on the market the consolidator model is thought to be reasonably sound.

‘I see no reason why it would not be able to float at some point down the line.

‘The question will be when it has enough assets under advice for the private equity owner to want to sell. Inflexion will have a target price based on a percentage of assets under management. For example it could want 1.5% or 3% of assets under management and could have a target price of £300 million,’ they said.

A statement from the company in January said Succession looks after £5.6 billion of funds on behalf of its clients.

Succession declined to comment.

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