After an extensive period of negotiation and due diligence, the ownership of Sense Network will transfer to new shareholders for a purchase price of £9.35m.
The new owners, Adviser Services Holdings Limited (ASHL), are building a group of companies providing complementary services to financial advisers. Sense will play a pivotal part in this group and continue to provide services to financial advisers who wish to remain independent and within a network. The service will continue unchanged, as will the team, with the exceptions of Phil Young who will step down as Chair, and Stephen Young as Non-Executive Director.
ASHL have a vastly experienced leadership team including Michael Couzens, Andy Ferns and Stuart Cresswell who have been appointed to the Sense Network board alongside the existing executive board members, Leanne Williams and Jason Kirk, and Non-Executive Director Rory Percival.
There is no intention from ASHL to change any contractual or commercial terms for staff or members at this point and they are keen to look at how they can bring their considerable experience and expertise to Sense members to enhance their proposition. Nor will there any job losses at Sense. ASHL intend to build their business around the current Sense business, including keeping its head office location in Knutsford. ASHL also acquired Lyncombe Consultants Ltd an IFA network of 30 Advisers earlier this year.
A number of individual Sense shareholders, representing a majority shareholding, were approached and offered a price for their shares which matched their expectations and was accepted. As ASHL do not currently offer competing services, and have committed to retaining Sense’s staff and independent status, this represented an attractive offer beyond price alone. There are some formalities to complete with remaining the shareholders to transfer their shares to ASHL which will take a few more days, however we expect no significant issues. The transaction is subject to FCA approval.
Michael Couzens, CEO of ASHL commented:
“I’m delighted to welcome the clients, advisers and staff of Sense to the ASHL Group.
As a recent Non-Executive Director of Sense I am fully aware of the positive culture, efficient operations and successful business model within the network.
‘We are excited to continue to support growth on the excellent foundations that the Sense management team and founders have established.”
Phil Young, Chair of Sense
“Sense is a great business which has thrived since it launched in 2007.
It has continued to grow throughout 2020 despite all the challenges this year has thrown up, which is testimony to the strength of its business model, the dedication of its staff and the adaptability of the successful advice firms it supports. I know the new shareholders recognise this and are committed to ensuring a seamless transition for everyone.”
For further information please contact Michael Couzens on 07753 451608 or Andy Ferns on 07836 295728.
Will the strategic direction of Sense change?
No, we intend to build on the strong foundations that are currently in place.
Will I be encouraged to go restricted or use a different investment proposition in some way?
No. We fully support both Independent and Restricted advice propositions and believe that the current investment solutions available provide excellent consumer outcomes.
Who are the shareholders? What do they want to get out of their investment in Sense?
The majority of shares are held by private individuals including the management team.
It is a huge endorsement of the existing Sense business and the management team that all investors believe that the Sense remains a solid, investable business, especially after the events of 2020.
Who will be on the board?
We will have a Sense Network board which will run Sense as a standalone business within the ASHL group. The board will include Jason Kirk, Leanne Williams, Michael Couzens, Andy Ferns, Stuart Cresswell and Rory Percival.
Will anyone be leaving?
Phil Young and Stephen Young will both step down from the board but remain available for support and assistance throughout the transition. John Netting will leave as a full-time employee but will remain as a consultant to ASHL.
What’s the long-term plan? Will Sense be sold?
Sense is not for sale. ASHL fully intend to continue to grow and to build the business value over the coming years.
What happens to Sense’s advice liability?
That stays with Sense and is now owned by the new shareholders.
Will you use the same resources on both independent and restricted models?
Absolutely we intend to invest in both propositions.
How will you manage any conflicts of interest between independent and restricted models?
We have set out our strategy and pricing to allow for us to be impartial between the propositions. We don’t see a conflict as there is a place in the market for both propositions as is demonstrated by numerous other offerings.
Q&A for Sense Staff
How does this effect staff employment terms?
All existing terms will remain the same.
Will anyone lose their job or change role? Will there be more opportunities for Sense employees?
No job losses are planned as it will be business as usual with future opportunities available as the business grows. ASHL are intending to build using Sense as the platform for servicing all advisers so there will be more opportunities in the future.
Will our current plans for growth change? Will you be bringing more staff in?
ASHL intend to grow the business in line with the existing business plan and will bring in more staff as required. The group will include a few more advisory businesses but we are very conscious of the need to keep the service personal and this requires us to keep it relatively small.
When will staff meet the new owners?
ASHL have a vastly experienced leadership team including Michael Couzens who was a Non-Executive Director with Sense, Andy Ferns and Stuart Cresswell who will introduce themselves as soon as possible. We are obviously more limited than normal in our opportunities to bring everyone together so we plan to arrange a series of small online web meeting to introduce ourselves, provide more information and try to respond to any immediate questions.
Will we change offices?
Our head office will remain in Knutsford.
Will there be a new EMI scheme?
We will introduce a performance related scheme with details to follow.