Boutique national IFA launched by leading industry figures who have successfully led acquisitions at previous firms have private equity backing to acquire IFA firms at a steady pace of £500m per annum

USPs of

  • Offering independence with open architecture
  • Guaranteed deferred payments without future adjustment
  • Once clients sign up to new client fee agreement you have protected your future deferred payments!
  • Non contingent on moving existing funds to in-house DFM

Options:

  1. Sell and retire preferred option,
  • where vendors act in an ambassadorial capacity to ensure smooth handover
  1. Sell with stay on post sale as Employed Financial Advisers
    • Consideration will be given for some vendors that are not ready to retire

Acquisition Deal Value

Competitive multiple of typically up to 3.5 to 4 times recurring income with 50% paid upfront, 25% at 12 months and 25% at 24 months. Vendors should bear in mind that this offer has a guarantee where the acquirer takes full responsibility for retention of clients by not adjusting the overall consideration value in the event that they lose a client.

For larger businesses, will typically pay 6 times EBITDA or higher for much larger businesses

This is ideal for Financial Advisors / IFA Firms where:

  • Who have a minimum of £20m of Funds under Management and will consider deals of over £100m
  • Ideally, your average client holding is circa £400,000 or above
  • However, this firm will also consider client banks above £250k
  • You are considering retirement
  • You have no or few DB pension transfers
  • Asset sales are preferred – will consider share purchases for minimum £50m / £100m of FuM
  • Clients can remain on existing investment mandates through open architecture
  • You want the protection of a guarantee over future capital payments after clients have signed over to the new acquirer
  • Unlikely to suit IFAs whose clients are heavily invested in ‘cheaper’ Passives
  • Will buy firms with 1% charging in place, although likes to have uplift if possible

The Company

A new boutique IFA firm has been created to provide the cornerstone of a new wealth management business. With the backing of long-term equity partner the aim is to grow a national IFA business via acquisitions of up to £500m of FuM annually alongside organic growth. The firm has already made two substantial acquisitions to create a national footprint with £2.5bn of AuA and 36 Financial Planners and 145 staff in total (all of whom are shareholders in the business). They retained key directors within those firms to support their ongoing organic growth. These businesses have three major assets: clients, staff and national footprint. Independent but with an internal DFM running a range of low cost MPS solutions ranging from 10-25 bps.

Unlike consolidators and other larger acquirers in the sector the firm will not be sprinting for scale as the intention is to build gradually a highly client centric boutique IFA business.

The firm has 5 offices across England in London and the South East and the North West  

IFA Client Bank Criteria

  • Nationwide locations – all firm sizes from £20m FuM upwards
  • High quality client banks with no / few DB pension transfers
  • Minimum average holdings per household of £400k or more
  • Well managed, well organised business and vendor having a cultural fit around client ethics shared with the acquirer
  • Strong preference for retiring adviser deals (but we will look at other deals)
  • Preference for books where existing TER is in excess of 1.5%.

Acquisition Benefits

  • Simple deal structure – asset purchase preferred
  • Guarantee of future deferred payments – when clients sign new adviser agreement the job is done!
  • Efficient due diligence process
  • Capital event in line with market terms of between 3.5 to 4 times recurring income
  • Robust funding in place
  • Operational team already in place to support integration and growth
  • Over 30 acquisitions completed since 2021 with an impressive 96% average client retention. As a result, they have lots of former business owners who would be happy to provide testimonials

Locations

  • Hampshire
  • Huddersfield
  • Kent
  • London
  • North London
  • North West (Cheshire)
  • Norwich
  • Shropshire
  • West London

Call us now on 0208 0044 154 or click Apply

Liability and Disclaimer

The information contained in our advert including any valuation calculations and percentage of up front and deferred payments are given in good faith and Premier Jobs UK Ltd uses all reasonable efforts to ensure that it is accurate; we give no representation or warranty in respect of such information and all such representations and warranties, whether express or implied, are excluded. No liability is accepted by Premier Jobs UK Ltd for any loss or damage which may arise out of any person relying on or using any information within this advert.

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