Accountancy group to target small wealth management firms after securing funding

Sedulo, an accountancy and professional services group headquartered in Manchester, is planning to acquire small wealth management firms after securing a new funding package from Santander UK. The funding package is £2.85 million, including a three-year revolving credit facility.

Through its acquisitive growth strategy, Sedulo is seeking to increase its share of the wealth management market in London and the North of England. As well as targeting strategic acquisitions of small wealth management firms, the group is also planning to take established independent wealth managers on board.

The group’s acquisition strategy is being put in place at a time of busy M&A activity in the professional services and wealth management sectors. The wealth management market is particularly ripe for dealmaking, with the level of fragmentation and huge number of small independent firms leading to predictions that the sector could be set for at least ten years of consolidation.

Founded in 2009 as an accountancy firm, Sedulo aims to become a “one-stop-shop" for professional services for SMEs. In addition to its Manchester base, the company also has offices in London, Liverpool and Leeds and has amassed around 2,000 clients, which range from SMEs to large corporates.

In the year to October 2021, Sedulo generated annual revenue of £10.5 million, compared to £8.5 million in 2020. This year, the company is targeting £14.3 million in revenue.

Sedulo Group Managing Partner Paul Cheetham said: "As a serviced-based organisation with double-digit organic growth, we have moved our banking to Santander UK because of its partnership approach to working with us and ability to meet our working capital needs.”

"Our growth plans include acquisitions in the financial planning sector and Santander UK has provided a pre-approved rolling credit facility to assist with the funding of our acquisition strategy."

Santander UK Relationship Director Sam Galt added: "Sedulo is a challenger and disruptor among mid-market professional services firms and it has an exciting future filled with growth and expansion. We are pleased to provide it with this funding package to help it achieve its strategic acquisitions strategy in the wealth management sector."

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