One well-placed source close to the deal told Mortgage Introducer this morning: “The deal is set to go ahead tomorrow, subject to FSA approval.”
The acquisition would be a perfect fit for LSL. Earlier this year it acquired Halifax Estate Agencies from Lloyds Banking Group for £1 and it already owns estate agents Your Move, Reeds Rains as well as surveyor e.surv.
LSL also part-owns Linear Financial Solutions which completely transformed its business model at the start of the credit crunch from a mortgage related business to one covering the whole of financial services.
The source confirmed to Mortgage Introducer that the Home of Choice deal was the next step in LSL’s plans to grow acquisitively over the coming year.
”Analysts estimate that Halifax Estate Agencies will be back in profit this year,” said the source, who suggested that LSL has a proven record of generating cash from previously struggling businesses.
Gerry O’Brien, chief executive of Home of Choice, said: “Tomorrow I expect to be telling our brokers about the new listed owner who will bring financial security to the network.
”Their questions about backdated fees, commission and pipeline will also be answered.”
Industry analysts and experts suggested the move was to be expected.
Stephen Knight, chief executive of Portillion, said: “Consolidation is always inevitable.”
Dev Malle, sales director at Personal Touch, added: "Advisers are going to want to know how they're affected in this deal - will their commissions be protected? Will work already completed but not paid for be honoured? They'll also want to know how protected their pipeline of work is in the short term. In the longer term, this will be about the proposition LSL is putting on the table to help them satisfy their customers' needs."
And Mike Fitzgerald, sales director of the Emba Group, added: “If this goes ahead it will be good news - being part of a larger network should bring economies of scale.
”I’m just hoping that this white knight makes sure advisers won’t lose out on their commission. Any deal should include some sort of life boat scheme to protect commissions.”
