Are you an IFA business with minimum of £500k of EBITDA wanting to sell to a well-invested leading UK Independent Financial Advice firm with c£5bn of Assets under Management offering typical multiples of 7 times or more?

Exit Option:

Ideal scenario is “Sell and Stay” post-sale with the Acquirer for up to 2 years.

Whilst our client will offer 100% outright purchases, their preference is to offer c75% equity purchase with a put and call option to acquire the remaining shares in 2 to 5 years (could extend beyond this if this suited both parties).

Acquisition Deal Value

  • Competitive multiple of:
    • EBITDA – typically 7 times or more

o   Upfront payments are typically 50% (potentially more) with the balance over 12 and 24 months

  • Sale Type
    • Share purchases considered
    • Retaining equity incentivises retention and growth through continued dividend payments on retained share
  • Staff / Premises
    • Staff will be retained on existing or better terms
    • Premises can be retained
  • Clients
    • Can remain on existing investment mandates through independent open architecture
    • Clients have independent access to the whole market – this is not a vertically integrated business. If outsourced to DFMs, this can remain outsourced to same DFM without any changes
    • First Class Private Client Proposition and differentiated multi-channel business model supports high retention of clients
    • Will consider companies with DB Pension transfers providing these have met Gold standard of transfer advice which meet externally appointed due diligence checks
    • Flexible Adviser fees can remain on existing charging arrangements
  • Trading Style
    • Businesses are likely to transition from their trading style during the 2 year earn out period

The Company

Our client was created through a management buy-out in 2015. The combination of high-quality management and access to acquisition finance has driven strong growth by building a scalable platform with a highly profitable business managing client assets of c£5bn.

The firm are renowned for offering superior independent financial advice to c13,000 households comprising high net worth and affluent clients nationwide.

An integrated back-office platform combines efficiency, scale and robust compliance. Advisers are supported by high quality paraplanner and admin teams with a highly cooperative approach between sales and operations. Robust governance culture delivered by an experienced team ensures business quality standards are met and minimises risk.

A fully integrated private client proposition with complementary corporate business division.

The firm have a history of onboarding acquisitions successfully.

Their strong financial outlook from strong historic growth, recurring revenue and highly cash generative business supports their ongoing quest for further acquisitions of firms with minimum of £500k of EBITDA.

This is ideal for IFA firms where:

  • You want a highly competitive offer from a respected national IFA company with strong financials
  • Your Financial Advisers, staff and premises could be retained as part of the sale
  • Independent financial Advice can continue to be provided to clients
  • You want a share sale to benefit from Business Asset Disposal relief
  • Defined benefit Pension Transfers will be considered under a share sale
  • Any corporate clients can be looked after by their corporate team
  • You want to stay involved post sale with competitive salaried roles, plus receive bonuses of 40% on new business written, plus continue to receive dividends on retained equity stake
  • Opportunity to have an equity stake in the Acquiring business if desired

IFA Client Bank Criteria

  • Minimum EBITDA of £500k
  • No maximum Funds under Management
  • Nationwide – all locations considered
  • Ideally this will suit mid to large sized IFA firms that have grown and the owners are ready to exit financial services over the next 2 – 5 years

Locations

  • Hotspot locations:
    • Manchester
    • Leeds
    • Edinburgh
    • Birmingham
    • London
    • Bristol
  • Nationwide opportunities (all locations considered)

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.