Financial advisory firm Foster Denovo has bought Newcastle-based financial planning firm Wade Financial, subject to approval from the Financial Conduct Authority.
Wade Financial is a chartered financial planning firm which comprises six advisers and 10 support staff and looks after £220mn of assets under advice on behalf of 780 family units across the north east.
The acquisition will increase Foster Denovo’s footprint in this area, and allow it to create a regional hub in the north east.
Foster Denovo CEO, Roger Brosch, said: “From the moment we met it was obvious that we share the same client centric approach and a clear and positive vision of the future.
“We have taken time to understand each other and this has given us great confidence in the cultural and propositional fit between us.
“As time has gone on, we’ve got to see how they really care about each other and their clients, and how extremely well connected they are in the north east."
He added that: “This is going to be a great chapter for both businesses.”
Foster Denovo said the acquisition will facilitate further expansion in the north east, as part of its UK wide growth plan.
The announcement follows Foster Denovo securing £100mn funding from minority stakeholder, Crestline Investors, for a five-year growth strategy leading on cultural and propositional fit.
Since then, it has completed 10 internal practice buyouts for 18 advisers, which have contributed to a tripling of the group’s earnings before interest, taxes, depreciation, and amortisation.
Foster Denovo believes its commitment to putting cultural and propositional fit before commercials creates highly successful integrations.
Additionally, the group stated that it sees itself as a facilitator rather than a consolidator, offering a flexible approach to ensure any deal works for all stakeholders.
Wade Financial managing director. Stephen Conway, said: “It has been so refreshing to negotiate with a leadership team that genuinely prioritises cultural fit.
“One of the key reasons for choosing Foster Denovo is its record of investing back into its own people.
“The Investors in People Gold accreditation and the supportive culture we could see working across all aspects of the business confirmed to us that Roger and his team truly invest in their people and that fits perfectly with our focus, too.”
He added that Wade Financial were also impressed by the “genuine commitment” to put clients “at the heart of everything they do”.
tom.dunstan@ft.com
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