SIPP provider and wealth manager Mattioli Woods has acquired Northern Ireland Financial Planner Doherty Pension & Investment Consultancy for £15.048m.
Doherty’s is one of Northern Ireland’s biggest Financial Planners and wealth managers with 1,320 private clients and £635m in Assets Under Management.
The firm has a major presence in Belfast and employs 28 staff. The management team will be retained by Mattioli Woods following the deal.
Doherty’s specialises in pension advice and discretionary investment management.
According to Mattioli, the deal will be paid in two parts: an upfront sum of £6.78m in cash and £2m in new ordinary shares in Mattioli Woods (equating to 325,998 shares) plus deferred consideration of £1.5m and contingent consideration of up to £4.768m payable in cash in the two years following completion. This contingent payment will depend on Doherty’s meeting and outperforming forecast earnings.
In addition, there will be contingent employee remuneration of up to £230,000 payable subject to the meeting of performance conditions in the two years following completion.
Mattioli says the deal extends its existing operations in Northern Ireland and will add investment expertise to the group’s existing discretionary management proposition. The deal will add six experienced advisers to Mattioli’s consultancy team.
The acquisition is expected to be earnings enhancing in the first full year of ownership.
Doherty’s was founded in 1985 and has a long-established Financial Planning and wealth management business. It offers a wide variety of advice, including specialist pension advice on SSASs.
Mattioli says the deal is in line with the group’s strategy to secure “high quality” acquisition opportunities alongside a continuing focus on organic growth.
Mattioli sees potential revenue synergies through offering Doherty’s clients access to Mattioli Woods’ bespoke investment products (including discretionary portfolio management), specialist SIPP pension administration, flexible employee benefits platform and alternative investment strategies.
Mattioli will also migrate the SSAS portfolio to Mattioli Woods’ proprietary pension administration platform, a move it says offers potential operational efficiencies.
In the year ended 31 December 2021, Doherty’s generated revenues of £2.92m with a profit on ordinary activities before taxation of £1.45m. At 31 December 2021 Doherty’s gross assets were £7.98m and net assets were £7.46m, including £5.16m of cash and £2.24m of listed investments.
Terry Lappin, managing director of Doherty’s, said: “We are delighted to be joining the Mattioli Woods Group as the synergy between our companies was obvious from our very first discussion. This can only improve our client offering and we are looking forward with enthusiasm to what can be achieved”.
Michael Wright, group managing director of Mattioli Woods, said: “It is very rare that such a great opportunity to bring one of the largest Financial Planning businesses in Northern Ireland into the Mattioli Woods Group presents itself. In over 30 years of operations, Doherty’s has built a solid and respected reputation, with integrity and professionalism at the heart of its client service.
“It was clear from our initial discussions that Doherty’s is a great fit culturally and strategically, including a focus on long-term client relationships, serving a similar client base to our existing business. This acquisition is an important step forward for Mattioli Woods, strengthening our position as the only SSAS and SIPP operator based in Northern Ireland.
“We are delighted to welcome Terry, Alan, John and their team into the group. There are many complementary elements between our businesses enhancing our specialist pension, discretionary portfolio management and Financial Planning propositions. We believe the range of products and services that Mattioli Woods has to offer can support the excellent outcomes from which Doherty’s clients already benefit.”
