Continuum’s Steady Growth Highlights the Momentum Driving UK Financial Services M&A
- Chapters Capital
- Jan 20
- 3 min read
20th January 2025
Continuum, M&G’s national advice business based in Plymouth, reported a 23% increase in assets under influence in 2024, reaching £2.4bn. This achievement marks the firm’s tenth consecutive year of double-digit growth. Additionally, Continuum's ongoing recurring income grew by 17%, and new business income rose by 16%. These accomplishments align with broader trends observed in the UK financial services M&A sector, which experienced its highest deal volume in over a decade.
2024 - Record M&A Activity in Financial Services
According to EY’s 2024 Financial Services M&A analysis, the UK financial services sector saw a 26% year-on-year increase in M&A activity, with 380 deals completed compared to 272 in 2023. This surge in deal-making reflects renewed confidence as the UK economy shows signs of recovery. The wealth and asset management segment, where Continuum operates, played a significant role in this growth, with the number of deals increasing from 107 in 2023 to 122 in 2024. The disclosed deal value in this segment saw an impressive jump, from £2.1bn to £9.3bn, demonstrating the rising demand for scalable and client-focused financial services.
Continuum’s Achievements and Growth Plans
Continuum reported strong inflows for its in-house My Continuum Select Model Portfolios, which recorded a 23% year-on-year increase. The firm currently employs 73 advisers, but it plans to expand to 80 by the end of 2025 and, within a few years, reach 100 advisers. Managing partner Martin Brown attributed the firm’s success to the increasing demand for high-quality advice and Continuum’s clear and consistent financial planning offerings.
“We have achieved several new records despite the backdrop of economic uncertainty and a changing regulatory landscape,” said Brown. “The demand for high-quality advice continues to grow as more people seek guidance for the first time.”
Brown emphasised the significance of addressing client needs in areas like retirement planning, tax changes, and maintaining living standards, which are increasingly pertinent concerns for clients seeking financial advice.
M&G’s Role in Driving Growth
M&G has completed its phased acquisition of Continuum, initially acquiring a 49.9% stake in 2023 for £22m, followed by an additional 25% stake in March 2024 for £12m. The final phase of this acquisition is expected to conclude in March 2025. This structured approach exemplifies the growing trend of phased acquisitions as firms like M&G strategically strengthen their presence in the financial advice market.
These moves occur as M&A remains a crucial tool for firms to achieve scale and streamline operations. EY reports significant cross-border activity in 2024, with non-UK firms acquiring 74 UK targets, up from 54 in 2023. Meanwhile, UK firms acquired 97 overseas targets, reflecting an outward-looking growth strategy.
Implications for Financial Services
Continuum’s growth exemplifies the wider consolidation trend within the financial services sector. The EY report highlighted that wealth and asset management firms utilise acquisitions to scale operations and meet evolving client demands. Continuum’s steadfast focus on client-centric services, combined with M&G’s phased investment, underscores the importance of aligning growth strategies with clients' long-term needs.
This exemplifies a sector-wide emphasis on scaling operations whilst maintaining high service standards. Continuum illustrates how careful expansion and investment in client-focused offerings can promote sustained growth for firms considering similar strategies.
What This Means for Business Owners
The ongoing surge in M&A activity presents opportunities and challenges for financial services firms. Continuum's success illustrates that strategic investments and phased acquisitions can promote meaningful growth while maintaining client trust. However, achieving such results necessitates careful planning, clear cultural alignment, and a focus on delivering consistent client value.
At Chapters Capital, we specialise in financial planning and wealth management M&A, helping firms navigate transitions and explore growth opportunities. Whether you are considering a sale, merger, or expansion, our tailored approach ensures you receive expert guidance at every step. Contact one of our professional associates today for a confidential, no-obligation consultation.