About

Merger Opportunities - 2010

Over the five years since Paradigm Capital Management merged with Norton Partners to form Paradigm Norton we have been through a period of consolidation, during which time we have strengthened the firm and put in place the foundations for our planned growth. We are now therefore in a position of strength, not only in terms of resources and manpower but also, following the successful formation of a strategic partnership with Macquarie Bank, in having the cash and capital to take the business to its next stage of development.

Our business strategy is to build Paradigm Norton both through organic growth, on a ‘client by client’ basis, and also by acquiring similar financial planning businesses which share our values and approach to client service.

We aim to be the buyer of choice for quality fee based Financial Planning* businesses, particularly those which are owner-managed and demonstrate a high level of entrepreneurial flair.

*Financial Planning. We define a financial planning firm as one that:

Offers a comprehensive life time cash flow modelling service to all clients;
Follows the IFP 6 step financial planning process or something similar;
Integrates investment planning, retirement planning, estate and tax planning and philanthropy planning into its core service offering;
Seeks to make a profound difference in the lives of its clients.

Many acquiring firms appear to view acquisitions as ‘merchandise’ - ie before the ink is dry on the business sale agreement the new purchaser is contemplating an appropriate exit strategy for the newly acquired business.

Our approach is different. Paradigm Norton will only engage in discussions with firms that truly care about their businesses, that have a demonstrable passion for putting their clients and team first and where there is every probability that both will stay with us for the long haul.

We are not interested in purely building assets under management or becoming an ‘asset aggregator’, nor are we interested in building numbers or ‘head count’ for the sake of it.

There are certainly acquirers of IFA businesses in the UK that have deeper pockets than ours but with some, the long-term sustainability of their business models is, in our view, questionable. Some would certainly seem more focused on the forthcoming IPO than concerned about genuinely making a difference in their clients’ lives.

We have appointed a senior operations manager who has the responsibility for merger and acquisitions and business integration. We recognise that there is always an opportunity to create new and better ways of doing things. Post-acquisition, therefore, we will work with our newly acquired partners to create a strategy which truly incorporates the best of both companies.

We are looking to acquire businesses that have the following key attributes:

Quality, well-qualified team who share our passion to serve clients with excellence;
Quality clients;
A high level of recurring revenue with at least a three-year track record of consistent and rising profits; *
Operate a transparent fee based remuneration structure;
Genuinely put Financial Planning at the core of the business.

* current year profits should be in the region of £200,000

If you are interested in finding out more about the Paradigm Norton acquisition strategy contact Barry Horner in the first instance on 01275 370 670.