Team Plc · LSE:TEAM
Team — Merger or Acquisition (April 2022)
19 slides from Team's merger presentation, April 2022
Slide 1: Proposed acquisition of Concentric and fundraising
Investor presentation Proposed acquisition of Concentric and fundraising April 2022
Slide 2: Executive summary
Executive summary • TEAM plc is raising a minimum of £2m through a subscription to fund our next acquisition • In this presentation we will give an update on the development of TEAM plc since the IPO last March • We will then tell you about the business we are looking to buy and the opportunities th
Slide 3: Development of TEAM
Development of TEAM Addition of Concentric 2020 2021 2022 Jan Mar Jul Dec Apr Theta (TEAM AM) IPO of TEAM JCAP Omega Concentric January 2020 March 2021 July 2021 December 2021 April 2022 Private client Admission to trading Treasury Jersey personal Jersey personal investment on AIM raising £7.8m mana
Slide 4: Where we are now
Where we are now Business overview Pro forma AUM/A breakdown1,2 Dec-21 – Now have the key services and licenses = integrated wealth and investment 3 4 £242m Theta business £231m 44% (TEAM AM) – Infrastructure to improve yield/revenues per client (multiple services) and 42% manage costs (scale benefi
Slide 5: Concentric acquisition overview
Concentric acquisition overview Concentric is an investment consultancy and financial planning business, delivering market leading investment performance for HNWI and institutional investors in Jersey and beyond Overview Financials Status: Heads of terms agreed, completion expected summer 2022 Histo
Slide 6: Acquisition pipeline
Acquisition pipeline Priorities Teams/individuals 1. UK license for advice and investment 1. IFAs (x3) 2. International distribution 2. Investment manager (x2) 3. More of the same in Jersey 3. Business development (x2) Businesses 1. UK wealth manager with DFM capabilities – £4m revenue – £450m AUM 2
Slide 7: Summary
Summary We have invested We now have a We will continue to We can now take We need follow in staff and systems platform that can expand in Jersey our joined-up on funding to and bought deliver organic services to new make the most of businesses to growth, and markets the many complete our identified
Slide 8: TEAM
TEAM
Slide 9: Disclaimer (1/2)
Disclaimer (1/2) THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR ANY JURISDICTI
Slide 10: Disclaimer (2/2)
Disclaimer (2/2) The information contained in this presentation is provided as at the date of its publication and is subject to updating, completion, revision, amendment and further verification and does not purport to contain all information that may be required to evaluate the Company and/or the P
Slide 11: Appendix
Appendix TEAM
Slide 12: A differentiated strategy
A differentiated strategy – Target highly fragmented markets – Focus on higher net worth clients / businesses Plan – Offer complementary services – Keep the entrepreneurial spirit of founder businesses, while implementing suitable corporate governance standards – AIM serves as a suitable platform fo
Slide 13: What makes us different
What makes us different AIM-listed Valuation arbitrage Jersey-based First-mover Shareholders - Funding available from - The same business can - IHT tax relief and - No one in the Crown - Cornerstone AIM be acquired for a lower recognised for Dependencies is institutional multiple in Jersey than it s
Slide 14: UK wealth management transactions
UK wealth management transactions Last twelve months EV / EV / EV / Date Target company Bidder company EV AUM Revenue EBITDA Revenue EBITDA AUM DFM (£m) (£m) (£m) (£m) (x) (x) (%) Mar-22 Brewin Dolphin RBC 1,600 55,000 404.1 98.8 4.0 16.2 2.9 Jul-21 Charles Stanley Raymond James 278.9 27,100 171.2 2
Slide 15: Theta (TEAM AM) acquisition
Theta (TEAM AM) acquisition Overview Financials Status: completed Acquisition Historic Current 20/21 TEAM plc sought a clean regulatory licence. Theta (TEAM AM) is a well established DFM providing bespoke portfolio management to Jersey clients Sep-19 Dec-20 Dec-21 Change Investment in people Assets
Slide 16: JCAP acquisition
JCAP acquisition Overview Financials Status: completed Acquisition Current 20/21 JCAP provides solutions for the management of cash and FX Dec-20 Dec-21 Change Income generative Cash under advice £1.3bn £1.6bn 23.1% – High-margin, recurring income stream Complementary business Revenues £0.94m £0.82m
Slide 17: Omega acquisition
Omega acquisition Overview Financials Status: awaiting regulatory approval Historic Current 20/21 Omega is a well-established IFA servicing the mass market in Jersey for Nov-20 Nov-21 Change pension and savings advice Assets under advice £68m £78m 14.6% Income generative – High yield and margin serv
Slide 18: Management incentive and retention scheme
Management incentive and retention scheme Under the TEAM plc Management Incentive Plan (the “MIP”) an allocation of shares is proposed. No shares under the original scheme are in issue, and the original scheme has been changed MIP structure: – The potential scale of the scheme is reduced from up to
Slide 19: The market and M&A opportunity
The market and M&A opportunity Attractive market – UK wealth management is a large and fragmented market with c. £2.0 trillion AUM – Jersey accounts of £600 billion of private wealth, £450 billion of funds and £1.3 trillion of custody – Many smaller DFMs are often founder-owned and managed and there