Mortgage Advice Bureau has completed its acquisition of First Mortgage Direct, purchasing the remaining 20% shareholding in the business for £9.35m.
MAB acquired the outstanding equity in the business from First Mortgage’s managing director Ian Grail. A quarter of this purchase price has been made in cash, with the balance covered by issuing new shares in the company, which is listed on London’s Alternative Investment Market (AIM).
Despite this bumper payout Grail will continue in his role as MD.
MAB first purchased that 80% stake in the mortgage advice firm in 2019. Last year First Mortgage made a pre-tax profit of £5.4m (in the 12 months to December 2023). It has net assets of £9.3m.
MAB deputy CEO Ben Thompson says: “Acquiring an 80% shareholding in First Mortgage in 2019 was strategically important to MAB at the time, enabling us to grow our expertise in specific market specialisms such as new build, and accelerate our overall market share as a group.
“Despite the various challenges we faced together over the last five years, the business has grown substantially in size and in profitability and has become even more important to MAB.
“We are therefore pleased to have now acquired the final 20% shareholding from Ian McGrail. Importantly, we are delighted that Ian has decided to commit to stay on as managing director and take First Mortgage further over the coming years.”
