Harwood Wealth buys adviser network for up to £4m

30th Aug 2016 09:34

(ShareCast News) - Harwood Wealth Management has acquired Network Direct Limited (NDL), a national network of financial advisers based in the West Midlands, for up to £4mThe AIM-listed financial planning and discretionary wealth management group said the deal will extend its reach nationwide and is its most significant acquisition to date.Network Direct has 107 advisers spread across England, Wales, Scotland and Northern Ireland. For the year ended 31 May 2015, it reported gross revenue before pay-aways of approximately £10.1m (unaudited) and was broadly break even.The maximum consideration payable for the acquisition will be £4m, based on the performance of NDL over the next five years. The initial consideration of £1m has been paid from the company's existing cash resources. A further deferred consideration of up to £3m will be payable in cash over the five-year period following completion.Chairman Peter Mann said: "We are extremely pleased to be able to announce this key strategic acquisition. We anticipate that the acquisition will enable us to further leverage our existing investment solutions to the benefit of NDL's advisers and clients, and also that it will enable us to expand our reach across the UK where there is a growing market for the delivery of quality investment management and advice."We welcome the NDL team and advisers to the group, and look forward to working with them to deliver fully integrated investment solutions to their clients."NDL is being sold by its principal shareholders, Willian Wynn, Jenifer Schwartz, Brian Raymond, Richard Simon and Leslie Dennis Lee, together with various other minority shareholders.