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Towry eyes 25 acquisitions in 2013 as RDR speeds consolidation
by Jun Merrett on May 13, 2013 at 11:59
National advice firm Towry has targeted acquiring 20 to 25 IFAs in 2013 as it predicts smaller players will need to sell or consolidate in the retail distribution review (RDR) world.
Towry has around five deals in the pipeline which will be finalised in the next two months and is looking to make between 20 and 25 acquisitions in total over the year.
Andy Cowan (pictured), Towry head of wealth advice, said the firm had a list of around 80 firms to potentially acquire, but has not started due diligence on them yet.
‘We’re not constrained on size but we’re looking for talent we can take on and we’re looking for good client bases that can benefit from the proposition we can offer,’ he said.
‘We have around 80 firms in the pipeline in the term of prospects, and a lot of small players, but these are qualified prospects where we’ve looked at the shape of the business and want to enter discussions, those we’re actively doing due diligence on is in the single numbers.’
In its financial statement for the year ended 31 December 2012 Towry chairman Gerald Corbett predicted 2013 would be year of consolidation as a smaller advice firms struggled to successfully transition to the RDR world.
‘We are seeing and will continue to see, an increasing number of owners of businesses looking to sell or consolidate with bigger players,’ he said.
Towry posted an operating profit of £11.8 million for the year ended 31 December 2012, an increase on the £10.2 million the company reported over the same period for 2011 thanks to ‘significant cost savings’ in 2012.
In 2012 Towry employees fell to 658 from the 741 employed during 2011.
However, the national also incurred £3 million in restructuring costs including staff terminations and the closure of its London Derry, Oxford and Norwich offices.
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