This Financial Adviser is in their 70’s and is looking to retire. They are looking for an acquirer who will look after their clients as they have done so for many years (still have their very first referral as a client). They mainly provide a f2f service for clients given the HNW nature of them so is looking for an acquirer who can provide this continuity moving forward.
The business has c£23m of FuM which is generating c£115k in recurring income. Their client bank consists of c18 households with average holdings of £1.2m per household. Average age of the clients are 63 years old with 1 household over the age of 75. Majority of the clients are on 0.5%, 6 clients pay 0.75% and 1 client is on a fixed fee of £5k p.a.
Majority of clients are based within London and the surround home counties with a few dotted further afield.
As this adviser is a sole trader it will be an Asset Purchase and the acquirer won’t be taking on any of the past advice liability. Ideally seeking a multiple of 4x RI due to the HNW nature of the clients.