Dyer Baade advises Elevation Financial Group on acquisition financing from Shawbrook Bank

Shawbrook provides acquisition financing to support Elevation Financial Group’s growth strategy

(London, February 2021) Dyer Baade & Company acted as exclusive financial adviser to Elevation Financial Group (“Elevation”) and its shareholders on a debt financing provided by Shawbrook Bank to support the group’s acquisition-led growth strategy.

Founded in 2011 and headquartered in Birmingham, Elevation had established itself as a specialist consolidator of independent financial advice businesses, with additional operations in London and Nottingham.

At the time of the financing, the group advised more than 1,200 clients with over £400 million of assets under advice and had developed a track record of acquiring and integrating independent financial planning businesses across the UK.

The new financing from Shawbrook refinanced elements of Elevation’s existing debt while also providing additional capital to support its acquisition programme. The facility was designed to give the group the financial flexibility to acquire up to four additional IFA businesses and materially increase its scale.

The transaction provided Elevation with a more efficient capital structure and committed funding to pursue its buy-and-build strategy while retaining ownership and strategic control of the business.

Tony Smith, Group Managing Director of Elevation Financial Group, said: “This is a hugely exciting moment for EFG. The debt raise will allow us acquire up to four businesses in 2021 and roughly double our size within a short period of time. I would like to thank Daniel and his team for the outstanding support. Dyer Baade’s strategic advice and deal execution capabilities are truly exceptional.”

Dr Daniel Baade, CEO of Dyer Baade & Company and lead adviser to Elevation on the transaction, said: “We were pleased to advise Elevation on a financing that was closely aligned with the group’s wider strategic ambitions. For acquisitive wealth management businesses, access to the right form of capital can be just as important as identifying the right acquisition opportunities. The objective was therefore not simply to raise debt, but to create a capital structure that reduced the group’s cost of funding while providing sufficient flexibility to execute a defined acquisition programme. Shawbrook understood both the underlying quality of the business and the strategic opportunity created by further consolidation in the UK financial advice market.”

Financing an acquisition-led growth strategy

Dyer Baade & Company advised Elevation throughout the financing process, including development of the strategic business plan, financial modelling, assessment and engagement of potential lenders, transaction structuring, negotiation of commercial terms, support through credit approval and coordination of the due diligence process.

The mandate combined Dyer Baade’s knowledge of the UK wealth management sector with its experience advising businesses on capital structure and acquisition finance.

The financing was followed by a period of accelerated M&A activity. Elevation completed three acquisitions shortly after the transaction and went on to complete four acquisitions during 2021, supporting the expansion of its national wealth management platform.