The island can expect to see more mergers and acquisitions in the business community.

That’s one of the messages arising from the announcement of a management buyout (MBO) at island firm Boston.

The new structure sees former group director of business development Katherine Ellis step into the chief executive officer role.

And Alex McNee remains as managing director upon completion.

They have vowed to follow ambitious growth plans and will look to ‘strategic acquisitions’.

The MBO has come during what is turning out to be a busy year of deals for the island.

They have included Manx Telecom having a new owner and Canaccord bought Thomas Miller Wealth Management.

SMP Partners recently announced a management buyout. And hard on the heels of the Boston MBO it was announced on Friday that Estera was being bought. Inflexion Private Equity is supporting the acquisition of Estera from Bridgepoint.

Following completion of the investment Estera will be merged with Inflexion’s portfolio company Ocorian.

Following the Boston MBO the company said: ‘For the immediate future, it is very much business as usual and no staff are affected with the exception of current chief executive Alex Fray who has decided to leave to pursue other interests.

‘Management has ambitious growth plans for the business and will be looking to expand the team in the near future.’

And it added: ‘Boston Multi Family Office will continue to be headquartered in the Isle of Man with the new ownership focused on organic growth and strategic acquisitions for broader jurisdictional reach.’

Boston was founded in 2002 and is involved in trust and fiduciary work.

Mr McNee and Ms Ellis spoke to Business News from their base in St Mary’s Court, Hill Street, Douglas, where around 30 staff are based.

Asked if they felt the growing number of deals was indicative of what was happening in the business world,Manxwoman Ms Ellis, 40, said: ‘Yes, absolutely. Over the last 10 years there has been a huge amount of activity with mergers, acquisitions and consolidations in this industry.

‘I suppose not unsurprisingly that has also sat aside increased regulation, compliance and I also believe the cost of complying with international regulations.

‘The CSP (corporate service providers) and fiduciary industry is extremely mature.

‘I don’t expect the M&A activity to slow down, I would expect that to continue.’

Mr McNee, 48, said: ‘The Isle of Man, probably more so than other jurisdictions, has got a very mature market here.

‘There are some great opportunities either for consolidation or for this sort of activity for management buyouts from existing owners who are possibly looking to move on into other areas.

‘And I think there is a lot of interest from outside looking in. The Isle of Man, in comparison to some other jurisdictions, this is a favourable place to be.

‘We have good secure regulation which is viewed positively globally and the workforce have probably had longer than most other jurisdictions within this sector.

‘It is a very mature market going back to the 1970s and 1980s.’

He said mergers and consolidations could be expected for a number of years to come.

Referring to the plan for strategic acquisitions, Ms Elllis said Boston presented an ideal platform for businesses looking to consolidate.

Ms Ellis said of the MBO: ‘It’s very exciting. It is all subject to regulatory approval but for all intents and purposes we have agreed the buyout.

‘The shareholders are very happy and we are very excited about the future.

‘We are a people business and it will be business as usual for our clients.

‘We are not rebranding or changing our name.’

She said they had been working towards the MBO for some months.

Boston Multi Family Office announced the management buyout last Wednesday.

Boston has grown into a commercial ‘multi-family office’ providing so-called boutique administration services from offices in the Isle of Man, Malta, and the Dubai International Financial Centre (DIFC). Boston has experienced strong growth and has completed three acquisitions in its history.

Chairman Richard Moore said the time was now right to pass over the ownership.

He said: ‘Both Katherine Ellis and Alex McNee are extremely experienced and highly regarded in the trust and fiduciary sector, and they have been instrumental in growing Boston’s client base and developing the business internationally.

‘They will make a formidable team and I wish them well as they go forward to write the next chapter of Boston’s story.’

Ms Ellis said: ‘It is a privilege for Alex and me to take the reins of such a reputable business at a very exciting time in its history.

‘The creation and preservation of family wealth remains our overriding mission and I am looking forward to working with the team to implement our strategy for future growth.’

Mr McNee said: ‘Boston Multi Family Office has responded to demand from intermediaries and other wealthy families to broaden its services over the past two decades and establish a multi-jurisdictional presence.

‘The ability to offer services across both non-EU-offshore and EU-onshore jurisdictions provides an enormous amount of opportunity and gives us maximum flexibility for structuring assets globally.

‘We are keen to explore further opportunities to increase our reach and continue to provide an excellent service for our clients, wherever they may be based.’

The buyout was undertaken with the financial backing support of a group of high net worth investors via Rockpool Investments LLP.

Boston Link, the recruitment specialist firm and former sister business to Boston Multi Family Office, now becomes a standalone

company. The management buyout is subject to regulatory

approval.