LONDON, UK: Kingswood Holdings Limited (LON: KWG) has agreed to acquire the business assets of Smythe and Walter Limited, an independent financial planning business servicing clients across Kent.
David Lawrence, UK CEO at Kingswood, commented: “Smythe and Walter are a growing firm and this acquisition enhances our existing footprint in the South East. I am delighted to welcome Lee Smythe and his team to Kingswood. This is our third acquisition of 2021 and we continue to have a strong pipeline of high-quality UK opportunities under negotiation, five of which are in the exclusive due diligence stage.
Lee Smythe leads a team of three who look after approximately 100 client households with around £40 million assets under management advising on all aspects of personal financial planning. For the year ended 31 March 2021 Smythe and Walter reported revenues of £293k, profit before tax of £100k and had net assets at that date of £9.7k.”
Lee Smythe, CEO of Smythe and Walter, commented: ”With an ever increasing regulatory burden, joining Kingswood enables us to gain access to the resources and support, which we need to both provide a wider range of services to our current clients and to grow our future business in a cost effective manner. In addition to this, given the events of the last 18 months or so, becoming part of a larger firm ensures a greater sense of security for both staff and clients alike.
With the additional support functions in place, I am looking forward to being able to spend more time on the most important and enjoyable part of our business, looking after our clients.”
Following completion, £420K will be paid immediately and up to £420k will be payable on a deferred basis over the following two years, subject to the achievement of pre-agreed performance targets.
The acquisition will be funded from cash recently received by Kingswood from the issue of new convertible preference shares, under the terms of its Convertible Preference Share subscription agreement with HSQ INVESTMENT LIMITED, a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street Capital Limited.
Kingswood’s partnership with Pollen Street grows in strength, and to date has provided growth equity of £44.8 million to support existing and future acquisitions. www.kingswood-group.com