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"Up to date and in-depth industry analysis"

Plenty of cash rich companies to rescue needy IFAs

24/07/2009

1 in 7 companies in the UK Independent Financial Advisors industry could change ownership as a result of the current economic climate, claims a new study by leading financial analysts Plimsoll.

With a surprising number of “cash rich” competitors waiting in the wings, the market could be set for a prolonged period of consolidation.

David Pattison, author of the new Plimsoll Industry Analysis – Independent Financial Advisors, explains, “I am sure any director worth his salt would agree that, in the current climate, there are simply too many companies chasing too little market. With many directors eyeing the exit doors and highly leveraged buyouts consigned to history for the time being, it really is a buyers market out there for cash rich companies”

Pattison continues, “In the Plimsoll Industry Analysis we have identified 384 companies that have a sizeable cash reserve sat on their balance sheets that, due to record low interest rates, is generating nothing. One company has a £141 million cash pot; a whopping 80% of turnover. These companies are now in the position to buy up large chunks of market share at rock bottom prices and make that money work for them. They must be like kids in a sweet shop at the moment – all those distressed competitors available at a fraction of their true value”.

“The UK Independent Financial Advisors market is still widely regarded as one of the UK’s most fragmented sectors. In our report we analysed 481 companies with a turnover of over £1 million per annum and have picked out 136 that are primed to be taken over. Buying one of these businesses represents a massive opportunity for someone to enhance their share of the market. Either way, the market is set for a wave of takeovers in the next months”.

The new Plimsoll Industry Analysis – Independent Financial Advisors will tell you which companies are set to be buying and who will be selling

Click here to find outmore about the Plimsoll Industry Report - Independent Financial Advisors.

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