The owner of this directly authorised IFA firm is looking to sell their client bank and retire. They are open to remaining with the firm post-sale for up to 6 months to support a smooth transition.
The business has a loyal client bank of c162 households, many of which have maintained a relationship with the owner for almost 30 years.
The business has a rented office space however this business can easily be operated from home. The firm has c£25m FuM (of which £15m is in bonds) and a recurring income of c143k. They have an average ongoing charge of 0.57% and an initial charge of between 1% and 3.5%. Currently the firm has around £1.7m of non-fee-paying wealth clients who are likely to need ongoing servicing, which is a potential opportunity for the Acquirer to negotiate new fee arrangements.
The business has no areas of high-risk advice and a clean FCA compliance record. The owner is seeking a share purchase however will consider asset purchase if the price reflects extra tax doing it this way. The ideal purchase price for this firm would be 3.5x recurring income.