Are you an IFA with between £10m to £150m AuM, having a good reputation with clients with scope for growth and would ideally like the option of a full or partial sale where the owner / staff stays on post sale?
Our impact investment client has branched out into Wealth Management
Regulated by the FCA and a member of the British Venture Capital Association; the firm was established in 2018, as a venture impact investor. This is funded by Family Office Investors and UHNWIs, (include members of the UK Royal Family and royal families abroad). The firm have several key partnerships which include the UK Government, Home Office, Department of International Trade and British Business Bank. The latter has directly invested into their portfolio. Grant Thornton periodically carries out due diligence and values their portfolio. Impact investing is where you make positive societal outcomes.
The firm have newly formed a wealth management division with the intention of acquiring top drawer quality IFA firms.
Acquisition Deal Value
Competitive multiple of recurring income / EBITDA typically paid over 2 years. Will consider partial sale where owners want to have a joint venture with the sale of remaining shares at a later date.
This IFA Acquisition deal is for you if:
- You have between £10m to £150m AuM with potential for growth
- You want to stay on post sale (include vendor and staff)
- Want either a full or partial takeover
- Ideally, will be located in London or any major city, however due to the client having headquarters in London, however, would not rule out any provincial firms.
- Your clients would like to have undisturbed existing investment mandates and adviser charges during the initial couple of years whilst building new adviser relationships and only moving to a new investment platform if in the client’s best interest to do so
The Acquiring Company:
- UK impact investor has reported a substantial increase in the value of their funds over the last 3 years.
- Their Impact Investment VC Fund, which invests in innovative science and tech companies that are solving global problems, surged from £56.5million in September 2019 to GBP211.2million at the end of February 2021, according to independent valuations conducted by Grant Thornton, one of the world’s leading accountancy firms.
- This achievement puts the company’s Impact Investment VC Fund into the top 5 per cent of VCs according to statistics from 2020 (TechCrunch): 50 per cent of VC funds return less than 1x; only 5 per cent, return multiples of more than 3x.
- The firm has a huge demand for wealth management services from their investors, so it is important they create a wealth management division.
- They have several high-profile investors to refer and wish to continue growing by acquiring additional firms, as well as employing quality staff, improving infrastructure, marketing, websites etc.
- They have an outstanding team that can drive the business forward.
- Our client, is seeking to establish their wealth division through initial acquisitions to create new hubs and then grow additional spokes to attach to its initial hub through further acquisitions
Financial Advisor Acquisition Benefits
- Directly authorised, independent financial advice with open architecture
- Opportunity for partial sale to enable you to benefit from an upfront capital event with balance paid against future growth
- Has substantial cash balances in place for growth through acquisition
- Opportunity to stay on post sale to support transition of clients and retention, plus be part of an exciting
Call us now on 0208 0044 162 to discuss this further
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