Alternative finance provider ThinCats has given funding support to IFA business Cheetham Jackson to take on a employee-owned company structure via an employee ownership trust (EOT).
Cheetham Jackson, which has 10 offices across the north of England, offers financial planning services related to investments, pensions and tax.
The business was founded in 2009 by Stuart Jackson, who said he has been planning his succession, deciding that the transition to employee ownership was the “most logical next step for the company’s future”.
Jackson, who will remain as chairman of the EOT, said: “At the heart of our proposition is our belief that clients deserve an excellent, high level of service and it has been a pleasure to lead a fantastic team who are dedicated to delivering excellent financial planning.”
“When we started planning for this transition, Nikki and I identified the need to build an exceptional leadership team, providing the depth of experience and breadth of scope to carry the business into its next period of sustainable growth. As the business moves to an EOT model, the culture of collaboration that being employee owned brings is vital and I am delighted that all 77 of our employees will now benefit from the new structure.”
Full operational running of the business will transition over the coming years, as Jackson and managing director Nikki Jones look to develop the leadership group within Cheetham Jackson.
Jones added: “It’s a really exciting time for Cheetham Jackson and I feel privileged to be part of leading the team into the next phase of growth for the business. We are incredibly grateful to Stuart, who has so brilliantly built the company over the last decade, and we all share his commitment and passion for providing personal, face-to-face, truly independent financial advice to our clients and playing an important role in all of the communities in which we operate.”
ThinCats
This is not the first time that the alternative finance provider has played a part in the growth of the IFA market.
Several days ago, London-headquartered MWA Financial entered into a partnership deal with ThinCats to support the group’s plans to build a national firm of IFAs. ThinCats made an initial commitment of £8.5m in funding, with longer term ability to offer up to £15m ($18m, €17m) and beyond.
Mike Dinnell, director business development at ThinCats, “Stuart, Nikki and the team at Cheetham Jackson have created a positive culture, which they are keen to retain as the business continues to grow. They have a clear plan to execute over the next five years and under EOT ownership all employees will benefit.
“It’s been a real pleasure to support the team and help them on their journey.”
Becoming a norm
EOTs are becoming a conventional succession plan for owners of financial advice business.
Last week, the owners of Poole-based IFA firm Blue Sky Financial Planning transferred 100% of their shares via an EOT.
In June 2022, International Adviser spoke with Victoria Hicks, managing director of M&A consultancy firm The Exit Partnership, about the rise of management buyouts and EOTs.
