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Ashcourt's Polin: why we bought UKWM
by David Campbell on Dec 13, 2013 at 10:19
He added that there was some ‘small overlap’ between the two businesses, alongside significant synergies. He declined to comment on the potential for job losses.
‘Most of the overlap is in operating systems, IT structures, investment processes and obviously some senior executive roles – you can’t have two chief investment officers, for example.
‘The genesis of both companies has been in the acquisition of over-managed businesses, and [we] have similar propositions – the management of both companies believe the future will be about scale.’
Key to the appeal is the company’s regional network, with five offices across the north west of England and Scotland, where the company has previously not had exposure, he added.
The acquisition is expected to be earnings enhancing within the first year. Both companies use the Avaloq back office system, allowing for a fairly straightforward integration and cost savings.
Once completed, Ashcourt Rowan’s recurring income will rise to 70% of revenue. It will also take the company ‘significantly closer’ to its long term target of a 25% profit margin, he added.
‘We will have a fully-formed corporate solutions business, bringing together two pensions business and able to gain scale. We have seen a huge amount of auto-enrollment business [already].
‘We have got the workable scale on our platform to offer significant opportunities. You only have to look at the lack of competition in the current market.
‘And of course it is not just about the corporate pensions side, we have then got a platform to offer our financial advice to executives, and our ISA management.’
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