A South West financial services firm has been acquired by AIM-listed group Tavistock Investments in a deal worth £3.7m.
Independent adviser Morgan Financial Group (Morgans) has offices in Bath and Cheltenham, and covers areas such as pre- and post-retirement planning, savings and investments, and inheritance and estate planning.
The group employs 10 financial advisers and has more than 1,500 private and corporate clients with an estimated £500m of assets under advice.
Tavistock has agreed to pay Corimar Asset Management Fund £3.1m for Morgans upon completion of the deal and a further £0.6m 12 months later.
Morgans has two wholly owned subsidiaries, Morgan Financial Group Limited and Morgans Limited, the latter of which is regulated by the Financial Conduct Authority (FCA).
Completion of the acquisition is conditional upon Tavistock’s receipt of change in control approval from the FCA and upon there being no material adverse change in Morgans’ financial standing prior to completion.
Morgans’ unaudited accounts for the financial year ended April 30, 2021, show the group achieved gross revenues of £2.3m, reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of £0.3m, had gross assets of £1m and net assets of £0.8m.
Steve Thorrington, Morgans' managing director, said; “We look forward to joining a much larger, well-resourced group and to working with Tavistock’s management team to expand the Morgans business.”
Brian Raven, Tavistock’s chief executive, added; “We are pleased to welcome Morgans into the Tavistock Investments group and look forward to working with Steve and his team to improve Morgans’ operational efficiency and accelerate its commercial development.”
Morgans was established in 1992 following a management buyout from Morgan Insurance Brokers Limited of Staffordshire, a company that had traded since the 1950s.
Like this story? Why not sign up to get the latest South West business news straight to your inbox
