James Gibb acquires LPM to create major player in factoring
Teaming up: David Reid and Douglas Weir (pic: contributed)
James Gibb Residential Factors has acquired Life Property Management in a deal that creates Scotland’s second largest factoring business.
The move grows the number of properties under management by James Gibb by nearly 70% to more than 44,000.
The new, enlarged business will have 88 staff across Edinburgh, Glasgow and Aberdeen.
LPM is the fastest growing factoring business in Scotland. It currently manages about 18,000 properties and has built strong relationships with house builders. David Reid, owner of LPM will become group managing director of James Gibb, reporting to CEO Douglas Weir.
Mr Weir said: “The factoring sector in Scotland is ripe for consolidation. We have looked carefully at the market and the acquisition of LPM is a statement move designed to create genuine competition and differentiation across Scotland.”
In the coming months, owners will benefit from the introduction of best practice, new technologies and market-leading professional development across the business. James Gibb will roll out its e-learning platform across all staff and extend its customer service and compliance teams into the LPM client base to improve governance. LPM’s approach to factoring will be integrated into all parts of the combined operation.
Mr Reid said: “The factoring sector in Scotland can improve dramatically. Our business has been on a dramatic journey of growth and this latest step will ensure we are part of exciting change for the better right across Scotland.”
The acquisition means James Gibb has grown tenfold in the last seven years. In 2012, it had 4,000 units under management when it was acquired by Strathspey Capital, its parent company. The business is seeking further opportunities to grow through acquisition, including setting its sights on Northern England.
Mr Weir added: “This is an exciting time for our industry where consolidation of existing factoring businesses will lead to improved resources and enhanced technological capabilities. We have seen the lettings sector consolidate dramatically and we expect to see factoring go through a similar process of change.”