A BOOMING South Tyneside financial advice firm is rolling out a business model for further expansion.
The Moneygate Group, based at Boldon Business Park, is forging ahead with ambitious growth plans, thanks to its new bespoke acquisition model, developed in partnership with leading North East commercial law firm, Muckle LLP.
Moneygate developed an innovative deferred buyout model to help it acquire other financial advisory firms in an efficient manner.
The model makes expansion-through-acquisition efficient by focusing on integrating the target firms, before completing the purchase.
Lee Hartley, chief executive of Moneygate, said: “We effectively absorb the target company as a franchise first, and then layer our business processes over the top.
“We can work together with the target company for a number of years, building profitability and making the business more efficient, prior to completing the acquisition.
“We do the difficult part – the integration phase – first and that is why we are happy to pay a higher price for a fully-embedded business.
“We’re helping businesses increase value by tapping into our IT, marketing and back-office resources, rather than simply carrying on as they are, and ultimately we are buying something that looks, walks and talks like a subsidiary before it actually is one.”
Moneygate worked with Muckle on the model from the start, Mr Hartley adding: “Muckle helped us go from concept to finished solution quickly so that we can get on with deals.”
Moneygate is now one of the UK’s fastest-growing independent financial advisory companies, advising on client assets of more than £1.75 billion.
It has seen turnover increase from £5m to £12m in the past year.
Philip Clare, associate solicitor at Muckle LLP, said: “We are delighted to have played an important role in acquiring a number of businesses for Moneygate, and it’s great to see a local business succeeding with its exciting growth plans.”