Toronto-based Richardson GMP is changing its name to Richardson Wealth as the firm looks to retain and recruit advisors after agreeing to GMP Capital’s purchase offer.

GMP Capital Inc. president and CEO Kish Kapoor said Friday that the firm is looking to build on the Richardson family’s 90-year legacy in the wealth management business as it focuses on expansion. The French name will be Patrimoine Richardson.

On Wednesday, GMP Capital announced it had agreed to an all-stock deal to acquire the shares in Richardson GMP Ltd. that it doesn’t already own. At the same time, GMP Capital announced it would also be changing its corporate name.

On an earnings call Friday morning, Kapoor said the firm is looking to grow “prudently and aggressively” by investing in its advisor team and recruiting top advisors from other firms.

GMP would consider acquisitions of “like-minded” IIROC-member businesses, he said, and “complementary asset management insurance capabilities.” It’s also looking at partnerships with fintechs and virtual banking companies.

“The addition of complementary and co-branded services to the Richardson Wealth offering can provide our advisors with additional opportunities to deepen their client relationships and meet more of their needs,” Kapoor said.

As of Friday, advisors representing over 82% of the firm’s assets under administration (AUA) have indicated they support the transaction, he said, with more expected in the next few days. That’s up from advisors representing 75% of assets when the deal was announced on Wednesday.

Retention is significant to the transaction’s terms and outcome. When the deal closes, 10% of the common shares will be paid to Richardson GMP shareholders, with the remaining 90% subject to a three-year escrow period, Kapoor said.

“The escrow also has a clawback provision. If, during the escrow period, a Richardson GMP shareholder leaves to compete, they will forfeit the full 90% of the shares received. Those shares will be cancelled,” he said.

Shares will also “be subject to downward price adjustment if the investment advisor departures over the first year following closing exceeds 15%, measured on the AUA associated with those investment advisors as at the date of closing,” Kapoor said.

The deal includes a $36-million advisor retention plan in the form of a non-interest-bearing three-year forgivable loan awarded based on performance.

Advisors can receive their share of the program in cash, in Richardson GMP shares valued at $5.14, or a combination.

GMP also stated Friday that founding member and former CEO Kevin Sullivan has resigned from his position as deputy chair.

Chief financial officer and corporate secretary Deborah Starkman will be leaving the company on March 31.

GMP has called a special meeting of common shareholders for April 21, 2020, to approve the Richardson transaction.