This long-established financial advisory firm is jointly owned, and they are starting to consider their options due to one of the Directors looking to retire as he is approaching his late 60s. The other Director would like to stay on advising post sale for 2-3 years then step away and would be happy to sign restrictive covenants if necessary as they want to exit the industry.
In the business there is an IFA / Paraplanner who looks after some of the clients but has capacity to look after more should their other duties be taken away. The Directors would like them to be kept on, along with two high level administrators (both part-time). The Directors feel these staff are integral to the business and will provide clients with a lot of continuity.
The business has c£70m FuM (£39m on Quilter) generating £350k of recurring income. Servicing c400 client households in and around Yorkshire. Average ongoing charge is 0.5%.
Seeking a share purchase so they can benefit form BADR and ideally a multiple of 4x recurring income which is a fair valuation given they have average holdings of £200k and no high risk areas of advice.