Merchant Securities has announced that it will buy Cavendish Young, an IFA and fee-based wealth management company, for an initial consideration of £65,000.
A further deferred consideration, capped at £1.3m, is payable on March 31, 2014. This is dependent on the future profitability of Cavendish Young and the amount of funds that come under group management until that date.
Cavendish Young manages £46m on behalf of 2,500 private clients.
It is being sold by its founder and managing director, Mark Estcourt, and his wife Tracy Estcourt. Estcourt has entered into a new service agreement with Cavendish Young.
The deal will increase Merchant Securities’ total group funds under management to £135m.
Merchant Securities, which specialises in private client investment management, institutional research and trading, corporate finance and corporate broking, says it will continue to look for opportunities to expand its business.