Wed, 12 Apr 2023 | BUSINESS SALE
Precise Protect, a Northern Ireland-based protection and insurance business, has been acquired by Tavistock Investments in a deal that could rise to £7 million. The deal structure comprises a £2.75 million cash consideration paid immediately, along with three subsequent annual considerations totalling £4 million linked to Precise Protect’s future performance, as well as £250,000 to be settled through the issue of 3,571,429 new shares in Tavistock Investments Plc.
If the full £7 million consideration is reached, the acquisition would represent around a 4.8x multiple of Precise Protect’s £1.45 million pre-tax profits for the year ending October 31 2022, generated on turnover of £6.5 million. At the time, the target company’s net assets were valued at £1.23 million.
Precise Protect offers life and critical illness cover, personal injury and income protection and private medical insurance to over 37,000 UK clients through a network of more than 200 advisers. Several of the company’s services were developed in-house.
The deal takes Tavistock group up to over 400 advisers and business introducers, with more than 110,000 private clients and 350 corporate and affinity clients with a total of around 16,000 employees. Tavistock said that the acquisition is the first significant takeover in the next phase of its growth plans, following the 2021 sale of its investment management arm to Titan Wealth Holdings.
Tavistock added that the acquisition will provide opportunities to generate operational cost savings and the opportunity for mortgage and protection advisers to be upskilled to become IFAs.
Tavistock CEO Brian Raven commented: “We are delighted to welcome Tony and his team into the group and to add Precise Protect's products to the wider group's service proposition. We look forward to benefitting from numerous synergies, including operational cost savings, increased profitability and new business leads."
Precise Protect Managing Director Tony Close added: "Precise Protect's revenues and EBITDA have grown rapidly and we remain excited about its prospects. However, we are very pleased to be joining the Tavistock group which will enable us to offer a much wider range of services to our clients, as well as deliver a development pathway for advisers and career development opportunities for staff."
Read more about the ongoing M&A boom in wealth management.
Find out more about using earnouts to structure M&A deals.
Find businesses for sale here.
If you are looking for an exit, we can help!
Established in 2007, this business specialises in high-quality appointment setting and lead generation services across multiple industries, including contract cleaning, HVAC, insurance, education, and construction.
London based IFA offered with the team looking to remain and client loyalty in place, this business can continue to operate efficiently.
Midland based IFA on the market with just 110 households, this business is able to operate very profitably and you would be bolting on valuable clients and staff.
26
|
Jul
|
Tunnelling construction technology company falls into administration | ADMINISTRATION
A tunnelling construction technology company based in Basing...
26
|
Jul
|
Sumer firm RMT completes second deal of the year | MERGER
RMT Accountants & Business Advisors, which is part of the Su...
25
|
Jul
|
Occupational health service provider secures PE backing for acquisitions | BUSINESS NEWS
A Hull-headquartered provider of occupational health service...
31
|
Aug
|
Tavistock completes sale of wealth division at 7.2x revenue | BUSINESS SALE
Tavistock has completed the £40 million sale of its as...
17
|
Mar
|
Tavistock places two North East pubs for sale | BUSINESS SALE
The Lambton Worm and The New Plough pubs in County Durham ha...
10
|
Aug
|
Sanlam UK buys Tavistock Financial in £1m deal | BUSINESS SALE
Cheltenham-based firm Tavistock Financial has been sold to S...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.