BL Magazine

Interview
Growing quickly
does put pressure on.
The five acquisitions
we completed in the
past year certainly
tested everything
we’ve got to give!
more. When professional firms work in conjunction
with private equity, it’s important for clients to know
that neither the service nor the cost is going to be
adversely affected. We’re proud to have delivered a
seamless service to our clients through the initial and
secondary buyouts, without the loss of any clients
as a direct result.
There’s been a significant amount of M&A activity in the
financial services sector in recent years – what is your
take on that and do you see it continuing?
M&A activity is indeed flourishing again in financial
services, which is strong evidence of renewed economic
confidence globally.
A substantial contributor to this, in our sector in
particular, has been the increase in regulatory and
compliance requirements within the industry. This has
made it very difficult for the smaller trust companies
to continue to operate because they just don’t have the
resources to cope with the additional administrative
and regulatory requirements.
In order to continue, they need to become part of
larger companies, with large established compliance,
legal and operational risk teams, and the systems and
processes in place to ensure adherence to regulations.
In addition to this, banks are streamlining their
operations to reduce costs while at the same time
reducing their exposure to risk. This has resulted in
a number of banks selling off their trust businesses,
which have become acquisition targets for the
larger trust companies.
As regulation within the industry continues to
tighten up, I don’t anticipate that this M&A activity
will slow down. Equiom is particularly active on the
acquisition front and we do
see this continuing over the
coming years.
Your expansion has been quite
‘aggressive’ in recent years – tell us
about that.
The business has grown from 80
staff in the Isle of Man in 2012 to
327 staff across five jurisdictions.
Seven acquisitions have
taken place since the secondary
management buyout in September
2013, five of which took place in
the six months up to May 2015.
Our strategy is focused on
creating a business of scale and
substance in both Europe and
Asia. This is best achieved by
concentrating on establishing
and developing successful
businesses in a small number
of jurisdictions. The purpose of our strategy is to
provide increased opportunities for our clients and
staff. Having a number of offices allows us to offer a
wider range of solutions to our clients, and to tailor
services to their specific needs.
Does growing quickly put pressure on the business
– from client service and compliance perspectives,
for instance? And how difficult is it to meet those
challenges?
Yes, it inevitably does put pressure on. The five
acquisitions we completed in the past year certainly
tested everything we’ve got to give!
Acquisitions particularly affect the central Group
support functions, such as compliance, finance,
corporate communications and IT. However, all areas
of the business are impacted, particularly by all the
travelling that myself and the senior team do in the
lead-up to an acquisition in order to form integration
plans and build relationships with our new colleagues.
Our priority throughout the acquisition process
is to ensure that everything happens as seamlessly as
possible for our clients. It’s also critical to establish
‘buy-in’ from the staff throughout the Group. I always
make sure that we regularly communicate internally
throughout the acquisition process to ensure that all
staff are aware of the progress we are making. All
Equiom staff are familiar with the acquisition process
and are well accustomed to the continually evolving
and fast-paced world that we work in.
Our IT and communications infrastructure has
particularly been tested in recent months. The IT team
works exceptionally hard to ensure that our systems,
data and communications networks are integrated
effectively. We’ve recently invested heavily to increase
the level of support within our IT, Integration and
Change functions, including upgrades to our core IT
infrastructure and employing additional staff.
Even after an acquisition has completed from a
technical point of view, the work continues to ensure
that the acquired business and the employees are
integrated into Equiom from a cultural perspective.
We have a ‘buddy’ system, where we pair up any
new employee with a current team member at their
equivalent level – sometimes in other jurisdictions –
to ensure that they are made to feel part of the
wider Group and to give them a point of contact
for any questions. Training is also an essential part
of the process.
The Compliance team has an important part to
play in acquisitions – from overseeing the due diligence
prior to the completion of the acquisition, to playing
a role in the integration and harmonisation projects
post-acquisition and communicating with the relevant
regulatory authority.
So, in summary, yes – growing quickly does put
18 January/february 2016 www.blglobal.co.uk