In a statement released on 23 April, Aim-listed Harwood said it had acquired Ascot-based Plan 65, which has assets under influence of £42m ($58.8m €47.8m).
Plan 65 is owned by its founders Keith Turner and Doug Rae who both plan to retire following the completion of the acquisition.
£1.56m deal
The purchase price for the deal is £1.56m and is dependent upon the performance of the assets acquired, Harwood said.
An initial cash consideration of £810,068 will be funded from Harwood’s existing cash resources. This will be followed by a deferred consideration of £747,296, payable in two instalments.
These instalments will be paid over a two-year period and are dependent on certain performance criteria being met.
Once acquired, Plan 65 will be integrated into the group’s subsidiary, Compass Wealth Management Consultants.
Acquisition strategy
Peter Mann, non-executive chairman of Harwood, said the acquisition is in line with the firm’s strategy to acquire IFA businesses that share its values and culture.
“We are very pleased to have completed the asset acquisition from Plan 65.
“Since its inception in 2011, Keith and Doug have built a successful business and we wish them well for their future. We look forward to continuing to provide Plan 65’s clients with continued expert advice and exceptional service,” Mann said.
Buying spree
The Plan 65 deal is the second IFA acquisition Harwood has made in 2018 alone.
In March, the firm purchased Southampton-based AE Financial Services for £4.6m.
Further, in August 2016 Harwood acquired Wolverhampton-based Network Direct and saw assets under influence increase 81% to £3.8bn for the financial year ending 31 October 2017, up from £2.1bn the previous year.
