This Financial Adviser is in their 70’s and is looking to sell their client bank and retire. They are a sole trader under an RI contract therefore they are seeking an asset purchase which is beneficial for an acquirer as you won’t be taking on any past risk. Albeit this is a very clean, vanilla client bank with no high risk areas of advice.
Currently they manage c£10.5m of FuM which is generating £60k in recurring income. Ongoing charge is typically 0.6% with some HNW clients on 0.4% / 0.5%. Clients are mainly located in the central belt of Scotland with an average age of 62 years. Average holdings per client across 35 households is c£300k.
Open to a longer earnout as a percentage of ongoing income or a traditional deal over 2 years. Ideally, they are wanting to have sold by April 2025.