The owner of this directly authorised business is looking to sell and retire. They have a self-employed registered individual (RI) in the business who owns their clients and isn’t ready to sell and retire yet but they do generate c£32.5k of income per annum for the owner in fees. Plus, the RI is in their 70’s therefore, they should be open to selling in the not so distant future so the acquirer will be able to secure this income too when the timing is right.
The owner manages c£5m of FuM generating £50k in recurring income which is available to purchase and the RI manages c£15m of FuM generating £139k in recurring income. Between them, they service c100 households with average holdings of £188k with clients predominantly based near Bristol. Ongoing charge is 1%.
This is a clean, vanilla business with no high risk areas of advice. They are seeking a share purchase to benefit from BADR and are ideally looking for a multiple upwards of 3.5 times recurring income.