Dyer Baade advises Central Investment Services on its sale to Ascot Lloyd

Ascot Lloyd acquires Central Investment Services

(London/Aberdeen, August 2021) Dyer Baade & Company acted as sole sell-side adviser to the shareholders of Central Investment Services (Scotland) Limited (“Central Investment”) on the sale of the business to Ascot Lloyd.

Based in Aberdeen, Central Investment was an established independent financial planning and investment management business serving private and corporate clients across Scotland.

At the time of the transaction, Central Investment had approximately £761 million of funds under influence, eight financial advisers and an experienced team of support staff. The acquisition represented a significant expansion of Ascot Lloyd’s presence in Scotland and established the group as one of the largest financial advice businesses in Aberdeen.

For Central Investment and its shareholders, identifying the right strategic buyer involved considerations beyond headline valuation. Increasing regulatory requirements, rising operating costs and the investment required to maintain a high-quality client proposition were placing growing demands on regional financial advice businesses.

Ascot Lloyd offered Central Investment the infrastructure, compliance capabilities and resources of a national wealth management group while allowing the business to continue serving its established client base in Scotland.

Nigel Stockton, CEO of Ascot Lloyd, commented: “Ascot Lloyd continues to be one of the fastest-growing IFAs in the UK, and the acquisition of Central Investment adds to our already extensive national footprint. We are extremely pleased that we have been able to continue the momentum with which we ended 2020 and our strong balance sheet means that we remain well-positioned to continue to deliver on our M&A strategy. Critically, we are continuing to identify high-quality businesses that match our culture and values.

“For Central Investment, they are joining a business that can sufficiently alleviate the regulatory and compliance burdens smaller firms face, allowing them to increase time spent on their core role – advising clients. Scotland is of huge importance to us, and we are delighted to have further grown our presence here.”

Derek Robertson, managing director of Central Investment, said: “In recent years it has become increasingly challenging for regional IFA practices such as us to continually adapt to growing regulatory burdens and ever-rising costs. Joining with a national firm such as Ascot Lloyd, means we have the support behind us and we can continue to grow and serve our local community working with clients in the long-term as we always have.

“It was important for us to find a partner that aligns with our culture and ethos, and through Ascot Lloyd we have found a perfect match. We look forward to working with our new colleagues to continue to offer the high-quality service that has underpinned Central Investment as a well-respected advisory business in the region.”

Dr Daniel Baade, CEO of Dyer Baade & Company and lead adviser to Central Investment on the transaction, said:

“We were pleased to advise the shareholders of Central Investment on the sale of the business. They had built a highly regarded financial planning and investment management firm with a strong position in the Scottish market and long-standing relationships with their clients.

“The objective was therefore not simply to identify a buyer willing to pay an attractive price, but to find a long-term home that combined strategic fit, cultural alignment and the resources required to support the business and its clients. Ascot Lloyd represented a strong fit across those dimensions.”

Derek Robertson, Managing Director of Central Investment, commented further: “Dyer Baade helped us to navigate through a complex sales process from start to finish. Based on a thorough analysis of our business and the market, they helped us to identify a number of buyers that matched our criteria. Daniel managed to achieve competitive bidding between a number of buyers, which led to a very attractive valuation. Furthermore, they helped us to prepare and navigate through due diligence and provided excellent advice on the commercial side of the legal documentation. I have no hesitation in recommending them to other business owners who want to sell their business.”

Dyer Baade’s role

Dyer Baade & Company advised Central Investment and its shareholders throughout the transaction, including strategic positioning, buyer identification and engagement, process management, valuation and negotiations through to completion.

The mandate required careful consideration of valuation alongside cultural compatibility, client continuity and the future position of the management team, advisers and employees within the acquiring group.

The transaction added £761 million of funds under influence to Ascot Lloyd and materially strengthened the group’s position in the Scottish wealth management market.