Wealth manager and SIPP provider Mattioli Woods announced today that it has acquired Bucks IFA firm Richings Financial Management in a deal worth up to £1.8m.

Richings director Clive Ridge said to ensure a long term future for the firm’s services and cope with the growing regulatory burden a sale of the business was the best option.

He said: “The increasing regulatory burden and resources required to successfully run an independent financial advisory business led us to explore the options available to ensure the long-term continuity of the quality advisory service we offer our clients. 

"I believe that with Mattioli Woods' more comprehensive infrastructure and larger support team behind us, Richings' clients and employees will benefit from the considerable additional resources and support now available as part of the Mattioli Woods group, enabling our team to enhance and expand the personal service our clients expect from us, while continuing to put them at the forefront of our advice.  We are very much looking forward to this exciting new phase."

Mattioli will pay £900,000 initially followed by up to £900,000 if performance targets are hit in the two years after completion.

Mattioli Woods has been on acquisition spree in the last few years. In July it completed a deal to acquire private equity firm Maven Capital Partners UK LLP and in May it acquired Southport-based Financial Planner and wealth manager Ludlow Wealth Management.  

Richings has £70m in assets under advice and provides a range of financial advice covering pensions, investment, mortgages and long term care. It is based in Iver, Bucks and works with 270 private client families. The firm’s four staff will remain with Mattioli Woods following completion.  

In the year ended 30 April, Richings generated revenues of £0.66 million with a profit before taxation of £0.34 million. At 30 April Richings' gross assets were £0.35 million and net assets were £0.26 million.  Mattioli Woods says the acquisition is expected to be earnings enhancing in the first full year of ownership.

Mattioli Woods CEO Ian Mattioli said: "Not only is this transaction a great addition because Clive shares the same philosophy as us, putting client's best interests at the forefront of his advice, but it further expands our operations in the South East following our other recent acquisitions.  We believe the broader range of products and services offered by Mattioli Woods, including our enhanced product offering to clients from the recent acquisition of investment manager Maven Capital Partners, can help build on the great outcomes Richings' clients already achieve."