Brooks Macdonald Group Plc · LSE:BRK
Brooks Macdonald — Merger or Acquisition (June 2020)
13 slides from Brooks Macdonald's merger presentation, Jun 24, 2020
Slide 1: Brooks Macdonald's acquisition of Lloyds Bank International's offshore wealth management and funds business
Brooks Macdonald’s acquisition of Lloyds Bank International’s offshore wealth management and funds business Another significant step forward in achieving our growth ambitions 24 June 2020
Slide 2: Another significant step forward in achieving our growth ambitions
Another significant step forward in achieving our growth ambitions Announced the acquisition of the Jersey-based wealth management and funds business of 1 Lloyds Bank International with FUM of £1.0bn1, for consideration of up to £9.6m A high quality acquisition to complement our focus on organic gro
Slide 3: BM is a successful wealth management business, well positioned for the future
BM is a successful wealth management business, well positioned for the future • Focused wealth manager, disciplined execution of strategy – Relentless focus on clients and strong adviser relationships – Foundations reinforced to achieve scalable business model; decisive actions to support growth and
Slide 4: International making good progress against strategic plan
International making good progress against strategic plan Progress during FY20: • Energised, high performing team – now stable, right-sized and focussed • Cut peripheral products and small higher risk clients • Revitalising International MPS, and planning Multi Asset Fund and Responsible Investing s
Slide 5: Lloyds' wealth and funds business is a strong match to BM's acquisition criteria
Lloyds’ wealth and funds business is a strong match to BM’s acquisition criteria BM criteria for acquisition Lloyds’ wealth and funds business fit • Well managed business with excellent reputation, strong focus on clients 1 High quality business and intermediaries • Well established affluent and hig
Slide 6: Lloyds' offshore wealth and funds business is high quality
1 Lloyds’ offshore wealth and funds business is high quality Private Client and Funds FUM breakdown • Affluent and high net worth client base and strong Private Client FUM by portfolio family intermediary relationships Relative • Total FUM of c.£1.0bn1, all managed on a discretionary Return Multi 22
Slide 7: … and a compelling fit, both strategically and culturally
2 … and a compelling fit, both strategically and culturally • Increases International pro forma FUM by up to two thirds, adding material scale Business model • New multi-asset and fixed income fund capability • Strengthens International’s distribution reach • Strong client and intermediary focus Cul
Slide 8: Key transaction terms involve a mix of share and asset purchase
3 Key transaction terms involve a mix of share and asset purchase • All cash deal with total net consideration of up to £9.63m • Acquiring 100% of the the share capital of LIFML and the investment management client assets and client relationships of Lloyds Bank International • Funded from own resour
Slide 9: Restructured business model and integration approach drive strong value creation
3 Restructured business model and integration approach drive strong value creation Confidence in achieving strong value creation Underlying EPS accretion from Day 1 as restructuring and integration largely occur pre-completion • Estimated post restructuring P/E multiple of 4.5 times post tax illustr
Slide 10: Conclusion – another significant step forward in achieving our growth ambitions
Conclusion – another significant step forward in achieving our growth ambitions • Lloyds’ offshore wealth and funds business represents an attractive acquisition opportunity with compelling strategic and cultural fit • Augments existing proposition, bringing proven multi-asset and fixed income funds
Slide 11: Appendix – Overview of Group strategy
Appendix – Overview of Group strategy
Slide 12: Strategy agreed in 2017, being executed over three phases
Strategy agreed in 2017, being executed over three phases • Launched strategy in late 2017: to deliver sustainable value-enhancing growth • Foundations reinforced: simplified and de-risked Group, strengthened senior team, upgraded risk management and operational framework, improved cost discipline •
Slide 13: Important information
Important information This presentation has been prepared for general information on matters of interest only and does not constitute an invitation to treat or a promotion, solicitation, or offer capable of acceptance and does not constitute professional advice of any kind. You should not act upon t
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