Are you a Financial Adviser with up to £30m who would ideally like to create a capital event by selling your clients whilst still wanting to stay on post sale for 2 to 4 years or longer in an employed capacity and gradually transfer clients to a new adviser prior to your exit?

Preferred route – Option 1 – Sell & Stay

This is ideal if you:

  • Are seeking to retire in the short – medium term future (next 2 – 4 years) or indeed want to stay on beyond this timeframe
  • Want to benefit from a capital event by selling your clients
  • Are not ready to stop advising yet
  • Want to take away the hassle from you of compliance, GABRIEL returns, FCA Fees and FSCS levy, PI premium increases etc
  • Join a team with back office and compliance support
  • Want the ability to undertake a handover process of your clients to the new Adviser to ensure seamless transition of service

Option 2 – Sell & Go

This is ideal if:

  • You are considering retirement now and willing to provide support with handover meetings
  • You want a fair price for your client bank
  • You would like your clients to receive an ongoing service from a directly authorised, independent financial advice firm with open architecture

Value:  Typically, 3 to 4 times recurring fee income over a 2 year deal period with 50% upfront, 25% in 1 year and 25% in 2 years. Plus employed remuneration with basic salary and bonus

Sale Type: Preference for asset purchases, although will not rule out share purchases

The Company 

Our client is being formed by joining together the industry expertise of three Directors.

  1. 1st Director is an IFA of a Directly Authorised firm with £80m of FuM – with 24 years industry experience. Driven by a desire to make financial and investment advice a truly customer focused service. Will be responsible for managing advisers within the team.
  2. The 2nd director of this business has been in the industry since 1979, trained by the top European and UK insurance companies, banks and fund managers in all aspects of the financial services industry. As a business director and manager of staff at all levels he prides himself on keeping up to-date with current compliance and regulatory requirements. Has experience of building financial services companies – one of which had 75 consultants and 30 administration and compliance staff. The company had in excess of £250 million FUM at point of sale. Will be responsible for managing the administration functions.
  3. The 3rd Director will join her fellow directors as the company’s Operations and Research Director. She has a wealth of financial services industry experience, setting up her own UK financial services company to provide outsourced support to financial advisors assisting with research, administration and compliance support. Holding Diploma in Financial Planning and Stockbroking qualification she will be providing, along with her team Paraplanning support to enable the team of financial advisors to provide to their clients what they do best – providing advice.

The firm will retain investments on current mandates by having open architecture, whilst building strong relationships. The firm are advocates of using modern investment solutions through client segmentation which are likely to be introduced between 1 and 2 years post sale, subject to being in the client’s best interest. These solutions can offer an opportunity to uplift adviser fees whilst maintaining TER’s and improving net investment returns to clients:

  • For high-net-worth clients using DFM’s such as Brooks Macdonald and Brewin Dolphin
  • Affluent clients typically using inhouse risk rated portfolios, including ESGs and using negotiated lower cost platforms via Praemium and Embark. With a strong Centrallised Investment Proposition managed by renowned Fund Managers offering low cost, highly diversified, historically strong performing options.
  • Lower cost investment clients utilising solutions through providers such as Royal London and Prudential

The firm have brought on board an experienced Compliance Manager with the additional support of utilising SimplyBiz. Backoffice systems via intelligent office.

This joint initiative business will have the transfer of a loyal customer base plus expects to quadruple in client numbers within 3 years attributed largely to organic growth from existing clients, referrals and website. The firm have attracted 4 additional quality financial advisors to join firm who are strategically located across the UK.

With the resources available to the firm, the directors are confident in providing and maintaining the desired level of service that clients have come to expect and is manageable.

The Firm has in place a 5 year plan to build itself to a mid-size company with FUM in excess of £500m

IFA Client Bank Criteria  

  • Client banks up to £30m FuM
  • Will only consider firms without or having few DB pension transfers
  • Advisers seeking retirement after final exit

Benefits

  • Fully independent with open architecture
  • The shareholders will be using their personal wealth to inject funding for acquisitions
  • Ability to sell and stay – ideal for advisers that want to remove the burden of running an IFA business and want back office support leaving them to do what they do best – advising clients.

Locations: 

  • All parts of England & Wales considered

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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