Are you a Financial Adviser looking to sell your client bank to a well-respected wealth management firm with extensive experience in acquisitions?

The Company

Our client company was established in 2019 with offices based across the UK. Since then, they have acquired over 10 directly authorised hubs and an additional 50 smaller businesses into them. Therefore, they have developed a tried and tested model of retaining clients.

Our client acquired their own DFM however still offer independent financial advice with open architecture to enable clients to stay invested on existing investment mandates

The firm have strong financials with funding in place to support their growth plans through acquisitions. 

Option – Sell and Go

This is ideal if:

  • You are considering retirement
  • You want a fair and highly competitive price for your client bank
  • You would like a structured, simple handover that is sensitive to your clients
  • You only want to deal with a financially sound and highly reputable Independent Financial Advisory firm
  • You want your clients to be looked after by local IFAs

Option – Sell and Stay

This is ideal if:

  • You are considering semi-retirement
  • You would like to give up running your advisory business, however, not ready to stop advising
  • You want to create a capital event with a highly competitive price for your business with ongoing remuneration for continuing to advise
  • You would like open architecture to allow your client to migrate on existing mandates where these best meet the clients’ needs

Value

Hubs (c£200m FuM +) – c7.5x EBITDA

Smaller spokes – 3.5x – 4x recurring income (occasionally over 4x for an exceptional business)

Preference for a 3 year period but will consider 2 years for ill health or if the advisor is older. Typically 40%-50% upfront with the remaining spread equally over 2-3 years.

Benefits

  • Independent Financial Advice
  • Open architecture to leave clients on existing mandates whilst new relationships are built with advisers
  • Deals are non-contingent to moving clients to in-house DFM / centralised investment proposition
  • Honour existing charging structures during the deferred buyout period
  • Tried and tested acquisition model which will enable smooth transition of clients to maximise retention
  • Happy with both share and asset purchases Share purchase will typically need to be £50m+ FuM

Hub criteria;

  • Need to have £1.5m+ EBITDA
  • Management team in place to run itself
  • Locations – South East, London or North East

Spoke criteria;

  • Ideally 1-2 man bands
  • £50m – £100m that can be bolted into a hub. Would go down to c£30m if the deal made sense but this would only be an asset purchase
  • Share purchase will typically need to be £50m+ FuM
  • Will consider sell and stay models for advisors wanting to stay on as long as they are over c55 years old. Too much of a risk if they are any younger
  • Minimum average holdings of £250k across the book
  • If it’s a London business then ideally average holdings of close to £500k

Locations

Nationwide

Call us now on 0208 0044 162 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. However, Premier Jobs UK 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 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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