Are you a Financial Advisor(s) with £20m to £80m FuM, within a 60 mile radius of London seeking to sell to a firm who have successfully acquired 5 – 6 IFA businesses and now looks after £195m FuM?
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 firm prides itself on maximising retention of clients. Typical deal structure is 3 to 3.25 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 firm initially established as a mortgage broker and in its early days grew through acquisition of a sizable mortgage business. Since incorporation in 2012 it has acquired 5 to 6 wealth businesses taking the total funds under management to £195m. With a Chartered Financial Planner as its co-founder the team have 6 IFAs and 5 Mortgage Advisers. The firm’s footprint is generally within a 60-mile radius of HA1, which is target area for more acquisitions. Central London and Docklands would be of particular interest as the firm already have Advisers working from this area.
They are directly authorised with open architecture for migration of existing investment mandates. The firm have a centralised investment proposition which is reviewed every 6 months. This uses outsourced discretionary fund managers e.g. Brooks MacDonald, Cazanove, 7IM, Vestra and Brewin Dolphin. They use Praemium as their platform of choice, although have legacy business from acquisitions on others such as Old Mutual, Aviva, L&G, Cofunds and Fidelity.
Their adviser charging is 0.6% with typical TER’s of 1.2% to 1.4%. Sometimes this is up to c2% on older legacy funds. There is no intention to shoehorn clients into their CIP as any transfers will only be undertaken if it is in the clients’ best interest. They use Intelliflo as their CRM system and have successfully integrated clients onto their CRM from other acquisitions. Even better if the vendor uses iO themselves!
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 or 2 person firm with an Administrator / Paraplanner
- 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 who have had previous experience of acquiring client banks in the past
- Only want to deal with a local long-established independent business that is profitable with strong financials to provide peace of mind for deferred payments and successful track record of previous acquisitions
- Want a firm with 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 centralised investment proposition of outsourcing MPS via a panel of external discretionary fund managers.
IFA Client Bank Criteria
- Would suit 1 – 2 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 a 60-mile radius of HA1 / London
- 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
- Maximum Ongoing Adviser Fees of 0.6% to match the Acquirer’s client servicing proposition
- 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
London & South East (within 60 mile radius of HA1)
Call us now on 0208 0044 162 to discuss this further
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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.