January 2010

Maximising the value of your business

Close Asset Management

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An active market

Perspective acquires Platinum Portfolios 22 Dec 2009

Buckles heads South in fresh acquisition push 15 Dec 2009

Rathbones nets second Devon-based IFA 19 Nov 2009

Bradbury Hamilton begins IFA acquisition spree 15 Jul 2009

UBS offers buyout deal to advisers using its discretionary service 29 Apr 2009

Brooks MacDonald prospers from IFA alliances 18 Mar 2009

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• Payment of 5x – 6x for Close recurring income

• Payment of 2.5x – 3x all other recurring income

• Offer applies to all clients – not just those invested in Close offering

• The actual multiples are based on your business profile

• Majority of payment (normally 2/3rds) is at transition point

Valuation principles

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The Close process

Close will work with you to efficiently

transition your clients and

deliver significant value to your

business

Close’s dedicated intermediary service team facilitates the transition process, at no cost

Where appropriate portfolios are transitioned to Close

Close forms relationship with clients and takes on responsibility for management

Payment based on the recurring income generated is paid

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To maximise the value of your business

Drive up recurring income streams

Platform assets

Cleanse client data

Evidence consistent advice process

Close works with you throughout, to maximise the value of your business

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Worked example

Value of IFA business (£000s)

Level of recurring income

30% 40% 50% 60%

Proportion

of recurring

income from

Close

0% 1,500 2,000 2,500 3,000

20% 1,920 2,560 3,200 3,840

40% 2,340 3,120 3,900 4,680

60% 2,760 2,680 4,600 5,520

Target valuation

Existing valuation

Based on:

• Turnover of £2.0 million

• 2.5x multiple for non-Close assets

• 6.0x multiple for Close assets

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Benefits to your clients

• Award winning wealth management service for all clients

• Part of the Close Brothers Group, a UK stock exchange listed company

• Transparency of fees

• High standard of reporting

• Your client chooses how they interact with Close – face to face, online or telephone

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Benefits to you

• Allows you to focus on your business (with the comfort of a secure exit strategy)

• Rewards growth and client retention

• Permits flexibility on exit timing

• Provides the option to delegate investment to an institutional quality discretionary manager

• Reassures through working with a trusted brand

• Gives access to excellent ongoing support from a dedicated service team

All through a well-structured transition process

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In summary, Close is an ideal partner

A trusted brand

Commitment to broadly based advice across your client base – no ‘cherry picking’

Strong investment credentials

We have the capital committed to this strategy

We want to work with you to achieve the right price

Close offers significant benefits for both you and your clients

You control the exit point that suits you

We provide ongoing, dedicated support to you and your clients at all stages (at no cost)

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Contact

Stuart DyerT: +44 (0)20 7426 6293M: +44 (0)7957 543 444 stuart.dyer@closeam.com

David MuncasterT: +44 (0)20 7426 4074M: +44 (0)7801 797 438david.muncaster@closeam.com

Close Asset Management Limited (Company No 1644127) registered in England and Wales, is authorised and regulated by the Financial Services Authority and is a subsidiary of Close Brothers Group plc. Close Asset Management Limited is a member of the Close Asset Management group and has its registered office at 10 Crown Place, London EC2A 4FT. VAT Registration No 245 5013 86.

Close Asset Management Limited10 Exchange SquarePrimrose StreetLondon EC2A 2BY

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Visit Close IFA Partnership Site

More information on http://www.closeacademy.com/ifapartnerships/

Close Asset Management Limited (Company No 1644127) registered in England and Wales, is authorised and regulated by the Financial Services Authority and is a subsidiary of Close Brothers Group plc. Close Asset Management Limited is a member of the Close Asset Management group and has its registered office at 10 Crown Place, London EC2A 4FT. VAT Registration No 245 5013 86.

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Close – Our capabilities

International private banking

Specialist property funds

UK fund management

Offshore fund management

Trusts and offshore

companies

Inheritance tax mitigation

products

International pensions and

QROPS

Discretionary investment

management

Professional advisor and your client

Banking and offshore services are provided by locally regulated group entities and subject to any local protection regime

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Why Close?

Financial strength and an exemplary reputation

• A diversified group of specialist financial services businesses

• A strong and experienced management team

• One of the 200 largest companies by market capitalisation listed on the London Stock Exchange

• The bank is one of the few UK financial institutions with no government lending or ownership

• Close Asset Management has over 24,000 clients with £6.8bn AUM

• 42 investment managers with 17 years’ average experience

Not even a Close call…

‘Close Brothers is now in a club of one, the only sizeable listed UK bank that has neither tapped its shareholders for fresh equity, nor even cut the dividend. … Respect!’

The Times 11 March 2009