St. James’s Place manages £200m annual internal business sale scheme

St. James’s Place (SJP) operates an internal Business Sale and Purchase (BSP) scheme that facilitates the expansion or exit of its partner firms. The program processes up to 300 transactions annually, with a combined yearly value of approximately £200 million.

While the scheme has existed since 1992 and has evolved alongside regulatory shifts like Consumer Duty, it has faced scrutiny regarding potential conflicts of interest. Critics have questioned the level of influence SJP maintains over business valuations, particularly since the organization facilitates the loans used in these transactions. However, participating partners have described the process as fair and transparent.

Lucy Logan, principal of Calderwood Financial, utilized the scheme to build a multi-adviser practice. Rather than growing organically, Logan used the BSP mechanism to purchase an existing practice to ensure business continuity for her eventual retirement. Under the scheme, SJP evaluates whether a partner firm meets specific parameters and determines the limits of affordable borrowing for acquisitions.