Would you like to sell your IFA client bank to the IFA division of one of Scotland’s leading law firms?

The Company

This IFA wealth management division was created over 10 years ago as a part of one of Scotland’s leading law firms which has a heritage of more than 250 years. With over 250 staff and 200 fee earners the firm is highly respected for combining the professionalism of a large law firm with the empathy you would expect from a sole practitioner. With 4 offices across the breadth and depth of Scotland including 2 key offices in Glasgow and Edinburgh they would ideally be looking to acquire client banks across the central belt however all parts of Scotland will be considered.

The IFA division has 5 IFA’s providing financial planning advice to affluent and high-net-worth clients; many of whom invest over £1m. They manage over £300m of Funds under Management and are ready to grow through acquisition as well as ongoing organic growth. Being directly authorised with open architecture means acquisitions would be able to be retained on existing mandates whilst relationships are built and only moved if this is in the client’s best interest. Their platforms/wraps of choice are 7IM, Standard Life and Transact. Additionally, there is an inhouse discretionary asset manager with ability to provide bespoke or model portfolios DFM.

Their minimum ongoing charges is £1,000 pa. Ongoing charges are typically 1% tapered down for larger investments. For in-house DFM clients the fee of 1% comprises 0.6% Adviser charge and 0.4% Fund Manager charge. However, clients can be retained on existing charging structures whilst relationships are built.

Available Acquisition Options:

Sell and Stay as a Financial Advisor (Preferred option for Acquirer)

Ideally, our Acquirer would prefer the vendor to join the firm during the 2 years deferred buyout period. You would be paid a salary plus additional uplift for any growth of FuM or moving assets to theirinhouse DFM option.

The deal would be non-contingent on moving assets.

This option would suit Financial Advisors looking to stay on for up to 1 – 2 years to fully embed the transition of clients, and for those not yet ready to fully retire.

Sell and Retire

This would suit a Financial Advisor looking to give up being an Authorised Adviser, although be available for handover meetings to ensure there is a smooth transition.

This is ideal for Independent Financial Advisor’s based in the central belt of Scotland or any area of Scotland particularly the east coast where:

  • You are seeking to sell your IFA clients (asset sale preferred although will consider a share sale for the right business)
  • You want a fair and competitive price for your client bank / business
  • You would like your clients to receive an ongoing service from a well-respected law firm with experienced and trusted IFA division with gravitas of dealing with affluent and HNW clients
  • The firm has open architecture where investments can stay on existing investment mandates and any deal is non-contingent on moving assets to an inhouse DFM.

Value:           

3 to 3.5 times recurring adviser fee income
Typically, 50% upfront, followed by 25% at 12 months and 25% at 24 months
Salary and bonus for Advisers staying post sale

 

IFA Client Bank Criteria

Ideal size is client banks of £10m to £50m
Clean compliance and complaint history
Based in Scotland

 

Benefits

  • Business heritage of over 250 years and over 10 years in wealth management
  • Operating from four office premises across Scotland
  • Opportunity for your business to thrive and grow
  • Expert legal advice available for clients
  • Strong financials to support the funding of IFA acquisitions

Locations

  • Scotland Glasgow, Edinburgh and East Lothian (Central Belt is preferred, however will consider all areas of Scotland)

Call us now on 0208 0044 162 to discuss this further

Liability and Disclaimer

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.