Are you a Financial Planning firm looking to plan your retirement strategy within a highly respected Chartered IFA; whilst also having the opportunity to drive growth in your business?

The Company

This Chartered IFA firm has continued to grow profitably and is now highly respected as one of the largest Chartered Financial Planning firms in the UK. With c170 IFA’s and overseeing £7bn of client assets, they pride themselves on their forward-thinking approach by offering you the opportunity to plan for the future whilst retaining control of your business.

Options – Downstream Buy-out (DBO)

Our client offers a unique, market leading, tax efficient acquisition exit strategy; which you can benefit from, by joining a Chartered IFA firm that allows you to retain control of your business, clients and brand, with no detriment to your staff, advisers or clients.

By working in partnership with our client, you will not be compelled to adopt a specific fund range or platform, clients continue to benefit from whole-of-market choice and the quality of existing client servicing are maintained. There is no requirement for you to adopt an increase to your client charging structure that is already in place. Therefore, they won’t ask you to compromise your independence and will not ask you to shoehorn your clients.

Once you have transitioned your business to become a partner, you have the ability to trigger the sale of your business when the time is right for you (minimum 2 years).

The DBO model means our client takes an initial minority stake in your IFA business and integrates your firm over a number of years (typically 4 years).

You will become part of one of the UK’s fastest growing and most forward-thinking financial services organizations, whilst retaining ownership of client relationships and the direction of your own firm. As soon as you become a partner you will benefit from the resource, experience and support to prepare your business for the ultimate acquisition. To further assist partner firms, they offer growth funding to each business that has an identified expansion plan and a clear appetite for growth. This line of finance is provided on an interest-free basis and is only repayable on final sale.

The integration process should lead to:

  • Increased revenues
  • Reduced costs
  • Focus on building your customer base and growing profits to maximise your acquisition price.

This helps to minimise both yours and their exposure to integration risk and allows you to profit from your own success upon final acquisition.  You have the ability to realise a premium value for your business while also receiving a general on-going salary for as long as you choose to remain in the business.

This will unlock a total payout over a 2 year period after the sale is completed (As a tax efficient acquisition structure, you should benefit from Entrepreneur’s relief (subject to HMRC confirmation).

Value

  • The DBO offers a fixed formula which is agreed at the outset. This is based on both recurring income and profit.
  • This is a tax efficient share purchase acquisition structure which enables shareholders to crystallise value and release cash from the business while also benefiting from Entrepreneur’s Tax Relief.
  • Chartered firms will benefit from a higher valuation

This is an ideal opportunity if you:

  • Have a sizable IFA business with minimum £500,000 of recurring income and would benefit from an EBITDA based valuation
  • You are considering an exit strategy
  • Want a fair price for your client bank
  • Would like a structured transition, benefiting from the resource, experience and support offered by one of the UK’s largest Chartered IFA firms
  • Only want to deal with a financially sound and highly reputable Independent Financial Advisory firm
  • Benefit from joining a highly respected firm that provides you the opportunity to maximise growth in your business and ultimately your sale value.

Benefits of joining as a partner (pre-completion)

  • Strong reputation developed by one of the largest Chartered financial planning firms in the UK
  • Whole-of-market proposition, therefore will not require you to shoehorn your clients
  • Take away the hassle from you of compliance, GABRIEL returns, FSCS levy etc
  • Excellent support to grow your business during the integration phase from in-house paraplanning, skilled compliance, marketing initiatives and fantastic in-house training

Criteria

You must be a Financial Planning firm, with an established client bank and minimum £500,000 of recurring income.

Locations

Nationwide

Contact us:     Call us now on 0208 0044 162 to further discuss this opportunity, or email us at [email protected] with your interest and details to receive a call from one of our Senior team.

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 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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