Tavistock Investments PLC (AIM:TAVI) has agreed to acquire Morgan Financial Group Holdings Limited, an independent financial advisory group with offices in Bath and Cheltenham.
A cash consideration of around £3.7mln has been agreed with the seller, Corimar Asset Management Fund, with £3.1mln of that paid on completion of the acquisition and the rest coming 12 months later.
Morgan Financial has two wholly owned subsidiaries, Morgan Financial Group Limited and Morgans Limited, the latter of which is regulated by the Financial Conduct Authority (FCA). The acquisition is dependent on the FCA agreeing to the deal.
Morgan Financial employs 10 financial advisers and has more than 1,500 clients with an estimated £500 million of assets under advice.
The firm’s unaudited accounts for the financial year ended 30 April 2021 show that the group achieved gross revenues of £2.3 million, reported underlying earnings (EBITDA) of £0.3 million, had gross assets of £1.0 million and net assets of £0.8 million.
Shares rose 1.3% to 3.9p on news of the deal.