Close Asset Management

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Close Asset Management

  1. 1. Maximising the value of your business Close Asset Management January 2010
  2. 2. An active market <ul><li>Perspective acquires Platinum Portfolios 22 Dec 2009 </li></ul><ul><li>Buckles heads South in fresh acquisition push 15 Dec 2009 </li></ul><ul><li>Rathbones nets second Devon-based IFA 19 Nov 2009 </li></ul><ul><li>Bradbury Hamilton begins IFA acquisition spree 15 Jul 2009 </li></ul><ul><li>UBS offers buyout deal to advisers using its discretionary service 29 Apr 2009 </li></ul><ul><li>Brooks MacDonald prospers from IFA alliances 18 Mar 2009 </li></ul>
  3. 3. <ul><li>Payment of 5x – 6x for Close recurring income </li></ul><ul><li>Payment of 2.5x – 3x all other recurring income </li></ul><ul><li>Offer applies to all clients – not just those invested in Close offering </li></ul><ul><li>The actual multiples are based on your business profile </li></ul><ul><li>Majority of payment (normally 2/3rds) is at transition point </li></ul>Valuation principles
  4. 4. The Close process Close will work with you to efficiently transition your clients and deliver significant value to your business Close’s dedicated intermediary service team facilitates the transition process, at no cost Where appropriate portfolios are transitioned to Close Close forms relationship with clients and takes on responsibility for management Payment based on the recurring income generated is paid
  5. 5. To maximise the value of your business <ul><ul><ul><ul><li>Drive up recurring income streams </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Platform assets </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cleanse client data </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Evidence consistent advice process </li></ul></ul></ul></ul>Close works with you throughout, to maximise the value of your business
  6. 6. Worked example <ul><li>Value of IFA business (£000s) </li></ul>Target valuation Existing valuation <ul><ul><ul><ul><li>Based on: </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Turnover of £2.0 million </li></ul></ul></ul></ul><ul><ul><ul><ul><li>2.5x multiple for non-Close assets </li></ul></ul></ul></ul><ul><ul><ul><ul><li>6.0x multiple for Close assets </li></ul></ul></ul></ul>Level of recurring income 5,520 4,600 2,680 2,760 60% 4,680 3,900 3,120 2,340 40% 3,840 3,200 2,560 1,920 20% 3,000 2,500 2,000 1,500 0% Proportion of recurring income from Close 60% 50% 40% 30%
  7. 7. Benefits to your clients <ul><li>Award winning wealth management service for all clients </li></ul><ul><li>Part of the Close Brothers Group, a UK stock exchange listed company </li></ul><ul><li>Transparency of fees </li></ul><ul><li>High standard of reporting </li></ul><ul><li>Your client chooses how they interact with Close – face to face, online or telephone </li></ul>
  8. 8. Benefits to you <ul><li>Allows you to focus on your business (with the comfort of a secure exit strategy) </li></ul><ul><li>Rewards growth and client retention </li></ul><ul><li>Permits flexibility on exit timing </li></ul><ul><li>Provides the option to delegate investment to an institutional quality discretionary manager </li></ul><ul><li>Reassures through working with a trusted brand </li></ul><ul><li>Gives access to excellent ongoing support from a dedicated service team </li></ul>All through a well-structured transition process
  9. 9. In summary, Close is an ideal partner <ul><ul><ul><ul><li>A trusted brand </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Commitment to broadly based advice across your client base – no ‘cherry picking’ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Strong investment credentials </li></ul></ul></ul></ul><ul><ul><ul><ul><li>We have the capital committed to this strategy </li></ul></ul></ul></ul><ul><ul><ul><ul><li>We want to work with you to achieve the right price </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Close offers significant benefits for both you and your clients </li></ul></ul></ul></ul><ul><ul><ul><ul><li>You control the exit point that suits you </li></ul></ul></ul></ul><ul><ul><ul><ul><li>We provide ongoing, dedicated support to you and your clients at all stages (at no cost) </li></ul></ul></ul></ul>
  10. 10. Contact <ul><li>Stuart Dyer </li></ul><ul><ul><ul><li>T: +44 (0)20 7426 6293 </li></ul></ul></ul><ul><ul><ul><li>M: +44 (0)7957 543 444 </li></ul></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul><ul><li>David Muncaster </li></ul><ul><ul><ul><li>T: +44 (0)20 7426 4074 </li></ul></ul></ul><ul><ul><ul><li>M: +44 (0)7801 797 438 </li></ul></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul>Close Asset Management Limited (Company No 1644127) registered in England and Wales, is authorised and regulated by the Financial Services Authority and is a subsidiary of Close Brothers Group plc. Close Asset Management Limited is a member of the Close Asset Management group and has its registered office at 10 Crown Place, London EC2A 4FT. VAT Registration No 245 5013 86. <ul><ul><ul><li>Close Asset Management Limited </li></ul></ul></ul><ul><ul><ul><li>10 Exchange Square </li></ul></ul></ul><ul><ul><ul><li>Primrose Street </li></ul></ul></ul><ul><ul><ul><li>London EC2A 2BY </li></ul></ul></ul>
  11. 11. Visit Close IFA Partnership Site <ul><li>More information on </li></ul><ul><li>http://www.closeacademy.com/ifapartnerships/ </li></ul>Close Asset Management Limited (Company No 1644127) registered in England and Wales, is authorised and regulated by the Financial Services Authority and is a subsidiary of Close Brothers Group plc. Close Asset Management Limited is a member of the Close Asset Management group and has its registered office at 10 Crown Place, London EC2A 4FT. VAT Registration No 245 5013 86.
  12. 12. Close – Our capabilities Banking and offshore services are provided by locally regulated group entities and subject to any local protection regime International private banking Specialist property funds UK fund management Offshore fund management Trusts and offshore companies Inheritance tax mitigation products International pensions and QROPS Discretionary investment management Professional advisor and your client
  13. 13. Why Close? <ul><li>Financial strength and an exemplary reputation </li></ul><ul><ul><ul><ul><li>A diversified group of specialist financial services businesses </li></ul></ul></ul></ul><ul><ul><ul><ul><li>A strong and experienced management team </li></ul></ul></ul></ul><ul><ul><ul><ul><li>One of the 200 largest companies by market capitalisation listed on the London Stock Exchange </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The bank is one of the few UK financial institutions with no government lending or ownership </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Close Asset Management has over 24,000 clients with £6.8bn AUM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>42 investment managers with 17 years’ average experience </li></ul></ul></ul></ul><ul><li>Not even a Close call… </li></ul><ul><ul><ul><li>‘ Close Brothers is now in a club of one, the only sizeable listed UK bank that has neither tapped its shareholders for fresh equity, nor even cut the dividend. … Respect!’ </li></ul></ul></ul>The Times 11 March 2009

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