{"id":3127,"date":"2021-04-07T14:17:00","date_gmt":"2021-04-07T14:17:00","guid":{"rendered":"https:\/\/www.marshberry.com\/eu\/?p=3127"},"modified":"2025-07-07T20:39:52","modified_gmt":"2025-07-07T20:39:52","slug":"march-2021-uk-market-monthly-ma-review","status":"publish","type":"post","link":"https:\/\/www.marshberry.com\/eu\/blog\/march-2021-uk-market-monthly-ma-review\/","title":{"rendered":"March 2021 UK Market Monthly M&#038;A Review"},"content":{"rendered":"\n<p>The first quarter of this year saw a massive increase in deal volumes. Undoubtedly, the fear that the Chancellor was going to put up CGT after having greatly reduced, and renamed, Entrepreneurs\u2019 Relief in the previous budget had a huge impact on certain vendors\u2019 decisions. But, the uncertainty in the previous quarters also made forecasting future performance more challenging. That caused deals to be delayed, only to be gradually revived as the Covid cloud lifted along with the vaccine roll-out which enabled a series of deals to be concluded in the first three months of this year.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/mcusercontent.com\/0826ff0c1f6d6550a203a6a01\/images\/45740451-3a77-4744-b9e2-f4afb09f14bc.png\" alt=\"\"\/><\/figure>\n\n\n\n<p>The above graph, showing transactions above \u00a35m of value, somewhat understates what in some sectors was a dramatic spike in activity in this quarter. For instance, significantly higher volumes of transactions were agreed in the insurance broking sector than in the whole of the previous year.&nbsp;Similarly, the same number of deals were concluded in the IFA sector in the first quarter of this year as the total for the whole of 2020. Those are industries populated by large numbers of smaller owner-managed businesses that are controlled by individuals predominately aged over 50. Here, tax planning plays a large part in the decision making process.<\/p>\n\n\n\n<p>While many sectors in the UK economy have clearly been heavily impacted by Covid, with specific exceptions, financial services have traded strongly throughout the pandemic. That was not a foregone conclusion last year when the FTSE 100 dropped by 32% from the middle of January to March and investors were fretting about the wider implications. But, aided by monetary and fiscal stimulus, confidence has been restored and the markets have staged a remarkable recovery, leading to the clearing of a backlog of deals to be completed.<\/p>\n\n\n\n<p>Short-term factors should not obscure the importance of the planning for a transaction, be it in five months or five years. We are only too happy to meet you, face to face or via Zoom, to discuss what drives value and how to prepare for it.<\/p>\n\n\n\n<p><strong>Insurance<\/strong><\/p>\n\n\n\n<p>Q1 2021 has been a record quarter for announced UK insurance M&amp;A, with a huge number of transactions having been precipitated by the spectre of an increase in the rate of Capital Gains Tax in the 3<sup>rd<\/sup>&nbsp;March Budget. Many of these transactions went right to the wire, completing on the 2<sup>nd<\/sup>&nbsp;March. In our February review we took a 5<sup>th<\/sup>&nbsp;March cutoff date and so many of the transactions that took place in the first days of the month were included in that newsletter. The majority of transactions below will have completed before the Budget, but were only announced after the 5<sup>th<\/sup>.<\/p>\n\n\n\n<p>This applied to transactions announced by Clear and PSC Insurance, who both completed a brace of deals just before the 3<sup>rd<\/sup>.&nbsp;PSC Insurance Group&nbsp;acquired Leicester-based commercial broker&nbsp;Abaco Insurance Brokers&nbsp;and specialist arboriculture broker&nbsp;Trust Insurance Services, while&nbsp;Clear Group&nbsp;completed deals for chartered brokers and fellow Brokerbility members&nbsp;Luker Rowe &amp; Co.&nbsp;and&nbsp;HIA International.<\/p>\n\n\n\n<p>Several other commercial broking consolidators were also active.&nbsp;Partners&amp;&nbsp;acquired Bolton-based&nbsp;Ives &amp; Taylor Insurance,&nbsp;PIB Group&nbsp;acquired financial lines MGA&nbsp;Acquinex,&nbsp;Specialist Risk Group&nbsp;purchased specialist taxi broker&nbsp;Emrose Insurance Brokers, and&nbsp;Towergate&nbsp;acquired the retail arm of&nbsp;AFL Insurance Brokers.&nbsp;Global Risk Partners&nbsp;acquired Leeds-based&nbsp;Lawrence Fraser Brokers&nbsp;and, via its hub business&nbsp;DCJ Group,&nbsp;J E Sills &amp; Sons.&nbsp;Howden Broking&nbsp;continued its recent run of deals with the acquisition of&nbsp;Sturge Taylor &amp; Associates&nbsp;(STA Group), an independent superyacht broker.&nbsp;Xenia Broking Group, the credit insurance arm of Nexus Underwriting, announced it had agreed to acquire&nbsp;Status Credit Insurance Brokers, a specialist trade credit broker based in East Sussex,&nbsp;and London-based&nbsp;Costero Holdings&nbsp;acquired Lloyd\u2019s broker&nbsp;Mar Risk Services&nbsp;(MarRS).<\/p>\n\n\n\n<p>In two notable personal lines transactions, ex-Aviva CEO Mark Wilson\u2019s&nbsp;Abacai Group&nbsp;announced that it had acquired temporary motor insurer&nbsp;Dayinsure, and&nbsp;Atlanta Group&nbsp;(part of Ardonagh) announced that it had acquired&nbsp;Marmalade, a specialist telematics broker catering for learners and young drivers.<\/p>\n\n\n\n<p>Finally, acquisitive insurance services business&nbsp;Davies Group&nbsp;announced that private equity firm&nbsp;BC Partners&nbsp;had invested in the business, acquiring a majority stake. Existing investors&nbsp;HGGC&nbsp;and&nbsp;AIMCo&nbsp;announced that they would also remain invested in the business following the deal.<\/p>\n\n\n\n<p><strong>Investment<\/strong><\/p>\n\n\n\n<p>In one of the potentially first examples of a UK-based financial services firm using the SPAC route to list in the US,&nbsp;Kingswood Acquisition&nbsp;is rumoured to have signed a letter of intent to acquire&nbsp;Lombard International, the unit-linked assurance group owned by&nbsp;Blackstone&nbsp;with over \u00a342bn in assets under administration. Analysts believe a deal could value Lombard International at \u20ac700m (\u00a3601m). Kingswood Acquisition listed in New York late last year and is sponsored by major shareholders in the listed wealth management firm&nbsp;Kingswood Group&nbsp;and private equity firm&nbsp;Pollen Street Capital.<\/p>\n\n\n\n<p>The investment platform space saw&nbsp;Parmenion&nbsp;being bought by private equity firm&nbsp;Preservation Capital Partners&nbsp;for \u00a3102m after being put up for sale by&nbsp;Standard Life Aberdeen&nbsp;late last year.&nbsp;AJ Bell&nbsp;acquired app-based platform&nbsp;Adalpha&nbsp;to develop its smartphone offering for advisers. Pensions giant&nbsp;Royal London&nbsp;acquired digital advice business&nbsp;Wealth Wizards&nbsp;from life and pensions rival&nbsp;LV&nbsp;and retirement-focused&nbsp;James Hay&nbsp;announced the sale of its closed book of SSAS schemes to&nbsp;Westbridge SSAS.<\/p>\n\n\n\n<p>In the IFA sector,&nbsp;AFH Financial Group&nbsp;received an increased offer worth \u00a3231.6m from US private equity firm&nbsp;Flexpoint Ford, and&nbsp;Ascot Lloyd&nbsp;secured financing of up to \u00a3100m from US-based alternative investment manager&nbsp;Ares Management.&nbsp;Tavistock Investments&nbsp;rejected a second approach by&nbsp;TEAM&nbsp;regarding a potential \u00a315.2m all-share exchange offer as \u201csignificantly undervaluing\u201d the business. Sussex-based&nbsp;Skerritts Consultants&nbsp;secured private equity backing from&nbsp;Sovereign Capital Partners&nbsp;in a deal worth \u00a355m. New IFA-consolidator&nbsp;Truinvest&nbsp;bought&nbsp;NLP Financial Management&nbsp;and&nbsp;Birchwood Investment Management&nbsp;as part of a five-year growth strategy targeting annual revenues of \u00a350m.&nbsp;Tilney Smith &amp; Williamson&nbsp;expanded in Surrey with the acquisition of&nbsp;HFS Milbourne. Glasgow-based&nbsp;Chartermarque&nbsp;was acquired by IFA-consolidator&nbsp;Fairstone Group&nbsp;and&nbsp;Lumin Wealth&nbsp;bought Hertfordshire-based&nbsp;Chamberlain Stean and West, bringing its assets to more than \u00a3600m.&nbsp;Paradigm Norton&nbsp;acquired Richmond-based&nbsp;Tower Hill Associates&nbsp;and Exeter-based&nbsp;Clover Wealth Management. London-based&nbsp;MWA Financial, backed by venture capital trust provider&nbsp;Triple Point, bought Hampshire-based&nbsp;Prosperity Advisors &amp; Stockbrokers, taking its assets to \u00a3300m.<\/p>\n\n\n\n<p>In the wealth management sector,&nbsp;Craven Street Capital&nbsp;was created after acquiring&nbsp;Christchurch Investment Management&nbsp;and&nbsp;Kreston Reeves Financial Planning,&nbsp;totalling \u00a3850m in assets under management and advice.&nbsp;Saltus&nbsp;acquired high-net-worth specialist&nbsp;Consilia Wealth Management&nbsp;and&nbsp;Netwealth&nbsp;successfully raised \u00a311.5m from existing shareholders and new investors.<\/p>\n\n\n\n<p>Elsewhere, online pension provider&nbsp;PensionBee&nbsp;announced its intention to list on the high growth segment of the London Stock Exchange. Similarly,&nbsp;Interactive Investor&nbsp;is exploring a potential initial public offering this year and agreed to buy&nbsp;EQi,&nbsp;the&nbsp;D2C business of&nbsp;Equiniti Financial Services&nbsp;for up to \u00a349m.&nbsp;Royal London&nbsp;bought a 30% stake in later life lending and product specialist&nbsp;Responsible Life&nbsp;and&nbsp;Responsible Lending,&nbsp;both part of&nbsp;Responsible Group.&nbsp;NYSE-listed&nbsp;AssetMark Financial Holdings&nbsp;announced the acquisition of SaaS-based financial planning and client digital engagement solutions&nbsp;Voyant&nbsp;in deal worth up to \u00a3104m.<\/p>\n\n\n\n<p><strong>Lending<\/strong><\/p>\n\n\n\n<p>In the challenger banking sector,&nbsp;Starling&nbsp;announced a \u00a3272m Series D funding round, valuing the company at \u00a31.1bn pre-money. The funding round was led by&nbsp;Fidelity Management &amp; Research Company, alongside&nbsp;Qatar Investment Authority,&nbsp;RPMI Railpen&nbsp;and&nbsp;Millennium Management.&nbsp;Zopa&nbsp;also announced that it had raised an additional \u00a320m from existing investors. Elsewhere in the banking markets,&nbsp;Arbuthnot Banking Group&nbsp;announced that it has disposed of&nbsp;750,000 ordinary shares of&nbsp;Secure Trust, raising gross proceeds of c. \u00a38.6m, and that its subsidiary&nbsp;Arbuthnot Latham&nbsp;had completed the previously announced purchase of&nbsp;Asset Alliance Group Holdings&nbsp;for c. \u00a310.1m.&nbsp;PEAC (Pan European Asset Co) Finance&nbsp;acquired&nbsp;Barclays\u2019 Asset Finance&nbsp;business, comprising total assets of c. \u00a31.15bn, for an undisclosed amount.<\/p>\n\n\n\n<p>The boards of&nbsp;Sherwood Acquisitions, a newly formed company owned by investment funds managed by&nbsp;TDR Capital, and&nbsp;Arrow Global Group&nbsp;announced that they had reached agreement on the terms and conditions of a recommended all cash offer of 307.5p per share to be made for the entire issued, and to be issued, ordinary share capital of&nbsp;Arrow, valuing the company at c. \u00a3563m.<\/p>\n\n\n\n<p>Elsewhere,\u00a0MT Finance\u00a0completed a management buyout by its joint founders with \u00a38m of funding from\u00a0Triple Point Investment Management.\u00a0PMD Business Finance\u00a0also announced a management buyout from its two shareholders and founders who will retain a minority stake and Board positions.\u00a0Royal London\u00a0announced it had acquired a 30% stake in\u00a0Responsible Group, an equity release and later life lending broker.<\/p>\n\n\n\n<p>*IMAS Corporate Finance LLP has been acquired by MarshBerry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first quarter of this year saw a massive increase in deal volumes. Undoubtedly, the fear that the Chancellor was going to put up CGT after having greatly reduced, and renamed, Entrepreneurs\u2019 Relief in the previous budget had a huge impact on certain vendors\u2019 decisions. But, the uncertainty in the previous quarters also made forecasting [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":3674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[],"mu_industry":[49,50],"class_list":["post-3127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-m-a","mu_industry-insurance","mu_industry-investment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>March 2021 UK Market Monthly M&amp;A Review - MarshBerry<\/title>\n<meta name=\"description\" content=\"News &amp; Views on Mergers &amp; Acquisitions, Strategies and Trends from the experts at MarshBerry.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"March 2021 UK Market Monthly M&amp;A Review\" \/>\n<meta property=\"og:description\" content=\"News &amp; Views on Mergers &amp; Acquisitions, Strategies and Trends from the experts at MarshBerry.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marshberry.com\/eu\/blog\/march-2021-uk-market-monthly-ma-review\/\" \/>\n<meta property=\"og:site_name\" content=\"MarshBerry Europe\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MarshBerry\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-07T14:17:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-07T20:39:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.marshberry.com\/eu\/wp-content\/uploads\/sites\/2\/2024\/01\/MBI_WhiteFlower-scaled.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Caroline Emmet\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@MarshBerryInc\" \/>\n<meta name=\"twitter:site\" content=\"@MarshBerryInc\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Caroline Emmet\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"Article\",\n\t            \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/blog\\\/march-2021-uk-market-monthly-ma-review\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/blog\\\/march-2021-uk-market-monthly-ma-review\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Caroline Emmet\",\n\t                \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/#\\\/schema\\\/person\\\/6dbf7b5f9b4ad950d0d804b136fd298c\"\n\t            },\n\t            \"headline\": \"March 2021 UK Market Monthly M&#038;A Review\",\n\t            \"datePublished\": \"2021-04-07T14:17:00+00:00\",\n\t            \"dateModified\": \"2025-07-07T20:39:52+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/blog\\\/march-2021-uk-market-monthly-ma-review\\\/\"\n\t            },\n\t            \"wordCount\": 1620,\n\t            \"commentCount\": 0,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/blog\\\/march-2021-uk-market-monthly-ma-review\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/01\\\/MBI_WhiteFlower-scaled.jpeg\",\n\t            \"articleSection\": [\n\t                \"M&amp;A\"\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/blog\\\/march-2021-uk-market-monthly-ma-review\\\/\",\n\t            \"url\": \"https:\\\/\\\/www.marshberry.com\\\/eu\\\/blog\\\/march-2021-uk-market-monthly-ma-review\\\/\",\n\t            \"name\": \"March 2021 UK Market Monthly M&A Review - 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