Fri, 12 Aug 2022 | BUSINESS SALE
Aviva is poised to complete its acquisition of wealth management firm Succession Wealth and said that it will continue to support the company’s M&A activity post-acquisition. The acquisition of Succession, first announced in March 2022, values the business at £385 million (approximately 7.1x its revenue) and brings around 19,000 clients and 200 planners advising on assets worth £9.5 billion.
Succession has established itself as one of the leading consolidators in the UK’s advice and wealth management sector, which is highly fragmented and going through an extended period of busy M&A activity. Aviva said that the company's 60 acquisitions to date demonstrate a proven track record of consolidating advice firms, improving client outcomes and providing better support for planners.
Commenting on the deal in Aviva’s latest interim results, Aviva Chief Executive of UK & Ireland Life Doug Brown said that the transaction was on track to close in Q3 of the year. Brown also said that Aviva expected Succession to continue with its acquisitive growth strategy once the deal was closed.
Speaking to Professional Adviser, Brown said: "As part of the acquisition of Succession Wealth deal, the intention was for them to continue with consolidation. They have a management team that has been very successful in that. We continue to be committed to that. As part of the acquisition we knew there would be further consolidation and we will continue to support them on that."
M&A in the wealth management sector has been growing for several years, driven by an ageing population of owners, the high proportion of small independent firms, rising sale multiples and the ambitious acquisition strategies of consolidators like Succession and Fairstone Financial Management, among other factors.
Commenting at the time the deal was initially announced, Aviva Group CEO Amanda Blanc said: "The acquisition of Succession Wealth boosts Aviva's presence in the fast-growing UK wealth market, supports our strategy to grow sustainably and expands Aviva's ability to offer high quality financial advice to millions of our customers."
Post-acquisition, Succession will continue to operate under its own brand as a separately regulated, independent financial advice firm.
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