Are you a Financial Advisor(s) with £20m to £80m FuM, based in London or South East / South Coast seeking to sell to an experienced acquirer who has previously acquired 6 IFA businesses?

Acquisition options:

Preferably Sell and Stay post sale for 1 to 2 years afterwards

This option would suit Advisers looking to stay post sale 3 – 4 days per week in the first year, then dropping down to 2 -3 days per week in the second year.

Sell and Go

This option will be considered on a case-by-case basis, providing the Vendor is available for handover meetings and to stay available when required, to ensure there is a smooth transition.

Acquisition Deal Value

This acquirer prides himself on maximising retention of clients. Typical deal structure is 3 to 3.5 times recurring income payable 1/3rd upfront followed by 1/3rd in 12 months and 1/3rd in 24 months. Will consider increased multiples and payment terms e.g. 40/30/30 basis or extending the deferred buyout over 3 years for the right client banks. Advisers staying on post sale will be remunerated on their involvement via a daily employment rate.

The Acquiring Company

This individual initially established as a mortgage broker and grew through acquisition of a sizable mortgage business. Since 2012 as an equal partner of an IFA business it acquired 6 wealth businesses taking the total funds under management to c£200m. The Acquirer has sold its share in this business and is looking to use the cash from the sale to acquire other IFA firms within London, South East or South Coast.

With an IFA business already under offer for acquisition the firm will be directly authorised with open architecture for migration of existing investment mandates and retaining existing charging structures.

This is ideal for Financial Advisors:

  • Considering retirement, but wanting to stay semi-involved post sale on a part-time basis until clients are fully integrated
  • Wanting to create a capital event, but take away the running of the business, Gabriel reporting, commission reconciliation and compliance functions, plus be on hand for a smooth handover of clients to maximise retention
  • Would like to be rewarded for any post sale involvement via a daily employment rate
  • Ideally, this would suit a 1 – 3 person firm with Administrator(s) / Paraplanner(s)
  • Open to share or asset purchases, subject to the vendor holding run off cover for up to 5 years for the former
  • Will consider firms with DB Pension Transfers, but prefer these to be with professional clients
  • Would like a structured handover that is sensitive to your clients – using a tried and tested model from having previous experience of acquiring client banks
  • Only want to deal with a financially strong individual to provide peace of mind for deferred payments and holding a successful track record of previous acquisitions
  • Want a firm offering Open Architecture, where they will leave existing investment mandates untouched if this still meets the client’s best interests and have an excellent performance record under their previous centralised investment proposition of outsourcing MPS via a panel of external discretionary fund managers.

IFA Client Bank Criteria

  • Would suit 1 – 3 person firms with the principal(s) wishing to retire, but willing to stay on part time post sale e.g. 3-4 days per week, dropping down to 1-2 days
  • Clients predominantly located within London, South East or South Coast
  • The Vendor is willing to use a solicitor that is familiar with IFA sales and work to timescales of typically 1 month from agreeing a formal offer to heads of terms and within 3 months of agreeing Sales & Purchase Agreement
  • Ideal funds under management of £20m to £80m

Benefits

  • A seamless transition which enables you to still be available post sale and remunerated for your time
  • No immediate changes to existing Investment Mandates or Ongoing Adviser Charges
  • Confidence of financial stability and successful track record of previous acquisitions
  • Client centric proposition designed to maximise client retention, resulting in protecting your deferred payments

Location

London, South East or South Coast

Call us now on 0208 0044 162 to discuss this further

Liability and Disclaimer

The information contained in our advert including any on target earnings information are given in good faith and IFA Acquisitions Ltd uses all reasonable efforts to ensure that it is accurate. However, IFA Acquisitions Ltd gives 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 IFA Acquisitions 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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