This Financial Adviser is looking to sell their client bank by early 2025. They are in their 60’s and are now considering their retirement options. They are keen for their administrator to be kept on post sale which would benefit an acquirer as they have had a lot of client contact therefore, they have a great rapport with clients and would provide continuity post sale.
The business manages c£22m of FuM which is generating £133k in recurring income. The average ongoing charge is 0.6% and they typically charge 0.75% with a handful of clients on 0.5%. The client bank consists of 88 households with £225k average holdings, mainly based in the North West.
As this adviser is an Appointed Representative an acquirer wouldn’t take on any of the past advice liability. Ideally, they are seeking a multiple north of 3.5x recurring income.