Brooks Macdonald Group has made headlines with its latest acquisition. This prominent financial services firm acquired LIFT Financial for £45 million.
This strategic move is set to broaden Brooks Macdonald’s client reach and accelerate growth in financial planning, enhancing their existing services.
Strategic Acquisition Details
Brooks Macdonald Group, a renowned name in financial services, has strategically acquired LIFT Financial for a substantial £45 million. The purchase involves an initial payment of £30 million, with a further £15 million contingent on meeting financial targets. This acquisition aligns with Brooks Macdonald’s overarching strategy to expand its client reach and accelerate growth in the financial planning sector. Regulatory approval is pending, with the transaction expected to finalise by March 2025.
LIFT Financial was founded by industry veterans Mike Holden and Joel Adams. The firm has earned a strong reputation, particularly among professional athletes. With a dedicated sports division led by Mark Tueart, LIFT serves prominent clients, including international footballers such as Angel Gomes and James Maddison. The business is poised for further growth as part of the larger Brooks Macdonald Group.
Brooks Macdonald’s Vision and Impact
Andrea Montague, CEO and CFO of Brooks Macdonald, expressed excitement over the acquisition. Brooks Macdonald views LIFT as a high-quality and well-established financial services business with a track record of profitable growth. The acquisition represents a significant step in executing their strategy and reinforces their commitment to delivering trusted financial planning services.
The integration of LIFT into Brooks Macdonald is expected to bring a new level of sophistication to their investment offerings. It also presents enhanced opportunities for LIFT’s team, as they join a larger organisation with more resources.
LIFT’s Growth and Market Position
Founded in 2007, LIFT Financial has expanded significantly from its modest beginnings. Initially comprising a team of eight after a management buyout from Chartwell, the company now employs over 90 staff across multiple offices, including Altrincham, London, and Edinburgh.
LIFT has cultivated a robust client base, primarily consisting of private individuals in financial services and professional sports, along with families and corporate clients. Their assets under advice reached approximately £1.6 billion as of December 2023, with £600 million in funds under management. This acquisition is projected to be accretive to Brooks Macdonald’s earnings per share in the first full year.
Mike Holden and Joel Adams own another successful venture, Mana, Manchester’s only Michelin-starred restaurant. Their combined entrepreneurial skillsets have driven substantial growth at LIFT over the years.
Financial Metrics and Future Prospects
For the year ended December 2023, LIFT Financial reported revenues of £11.3 million. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached £2.5 million, with a reported profit before tax (PBT) of £0.5 million. The company held net assets valued at £0.8 million, showcasing its solid financial foundation.
Brooks Macdonald anticipates the acquisition will augment its financial planning capabilities, supported by prior acquisitions, such as Lucas Fettes Financial Planning. The objective is to enhance the group’s overall investment management capabilities and seize opportunities for growth in a dynamic financial landscape.
Strategic Fit and Growth Opportunities
LIFT Financial forms a strategic fit within Brooks Macdonald’s framework, aligning well with its investment management capabilities. The acquisition promises robust growth prospects as Brooks Macdonald seeks to further its vision of creating a comprehensive UK financial planning capability.
The deal also includes up to £5 million paid in a 50:50 mix of cash and Brooks Macdonald shares at the end of the first year, contingent on achieved EBITDA targets. This structure is designed to ensure continued performance and alignment of interests between the parties involved.
Advisors and Legal Representation
The acquisition process received counsel from esteemed advisors on both sides. Squire Patton Boggs and DC Advisory provided guidance to LIFT’s shareholders, with key figures such as Mae Salem and Andrew Claymore playing pivotal roles in the transaction.
The collaboration and expertise from these advisory firms ensured a seamless acquisition process, reflecting the professionalism and diligence applied throughout the negotiation and execution stages.
Conclusion
With this acquisition, Brooks Macdonald significantly strengthens its position in the financial services sector. The integration of LIFT Financial is anticipated to bolster Brooks Macdonald’s capabilities and growth trajectory. This strategic move exemplifies calculated growth and forward-thinking within the industry.
Brooks Macdonald’s acquisition of LIFT Financial marks a pivotal moment for both entities. This move is expected to drive growth and expand client service offerings.
By integrating a high-quality financial services firm like LIFT, Brooks Macdonald positions itself to navigate and thrive in a competitive market landscape.