Manchester-based Castlefield's founder John Eckersley is moving into the role of chairperson in the autumn, subject to Financial Conduct Authority approval, amid visions of doubling the company's assets under management over time.
The shift in senior management functions means that Eckersley, who set up the business in 2002, has been considering the best possible succession plan for the team and how to help the company grow by selective acquisition.
He told FTAdviser: "I am going to move into the formal role of chairperson in September, subject to FCA approval, which does have an SMF attached from an FCA point of view.
"I have a great senior team who are all responsible for different areas of the business and I have been working out my next steps while I am chairing the company board.
"I believe in succession planing for the whole team; replacing a founder with a single person is difficult but I'm not going anywhere soon.
"I don't need an exit personally, and I want to devote time for the next few years to get to know people in our sector, nurture existing relationships and see if we can make a strategic acquisition."
He said one of the big issues in the wealth planning sector was the continued merger and acquisition activity, often times carried out by non-UK private equity companies.
"Financial services seems to be on a conveyor belt of acquisition after acquisition. It's like a fish being eaten by a bigger one, and that being eaten in turn.
"Private equity is a massive fish in this chain - and you see billions of pounds ending up under management but what does this mean for the consumer? What does this mean for client choice?"
It is understood there are approximately 15 active consolidators in the UK market with private equity backing with high multiples.
"Yes, the multiples can be phenomenal but any acquisition that involves end clients has to be based on what's best for the client?", Eckersley asked.
He admitted the company was "always being courted by people who are talking about strange multiples - but you cant have 'x multiple' and expect to continue doing what you are doing well for the clients."
Getting the right fit
So how will he go about finding the right potential purchase in the next stage of his career?
"It's hard to get the transactions right all the time but I have a lot of experience", he said, referencing the fact he has more than 30 years' industry experience under his belt.
"You can't force the pace on strategic acquisitions. It has to be the right company with the right fit and they have to meet each one of our core values", Eckersley added.
Castlefield's values are:
- Diversity
- Equal opportunities
- Environmental impact
- Commitment to recycling
- Training and development
- Health and Safety
- Giving back.
While the company is always speaking to companies who might be interested in selling, Eckersley said it was not something Castlefield was prepared to rush into.
