Company

Our Client is a highly profitable National Independent Financial Advisory Group with AUM c.£10bn. They have over 165 advisers and 625 staff in total operating from almost 50 offices nationwide. With the backing of a well-respected and well-funded mid-tier PE House plus mainstream bank they have funding in place to continue their acquisitive growth strategy.

Set up almost 20 years ago with a view to consolidating the IFA market they have many years’ experience of making over 100 acquisitions of IFA firms and are considered one of the longest standing active national consolidators in the UK.

They have a strong, client-centric and compliance focussed culture and all their acquisitions must share their ethos and client centric culture. Offering fully independent advice with open architecture they utilise all major platforms and third party DFM’s. In addition, they also have strong performing inhouse discretionary portfolio management which is a highly cost-effective solution which performs well and is very well received by clients. However, acquisitions are non-contingent on making any changes to investment or charging structures.

Exit Options:

Immediate Retirement

  • They are interested in acquiring financial advisory businesses where the vendor plans to retire at completion.
  • They pay 50% up front on completion and 25% at 12 months and 25% at 24 months.
  • Deals under this structure are typically a multiple of between 3.5 and 4.5 times annual recurring income.
  • Office isn’t kept but staff can be added to an existing location.

or

Transitional Retirement

  • Vendor principal(s) remains as an adviser for a period, but with a view to retiring in the short/medium term
  • 50% upfront on completion, 25% at 12 months and the final 25% is paid 15 months after the advisor has deauthorised.
  • Office can sometimes be kept on if there isn’t an office nearby
  • Staff can be kept on
  • Paid on a normalised EBITDA basis of usually 7-8x payable

Partnership;

  • Aimed at larger businesses which retains staff and office to become a hub
  • This deal works best when a vendor principal(s) wants to grow the business as part of a national firm. Can be part of a longer transition to retirement. Opportunity to inherit local clients that are acquired by the firm from retirement deals
  • 60% will be paid out 50/25/25 over 2 years and 40% within two years of retirement (or pre-agreed timeframe).
  • Upside sharing as the business grows under the acquirer ownership meaning the remaining 40% could be worth far more than what it would have been initially on day 1
  • This is a normalised EBITDA multiple of 7-8x. 

Benefits:

  • Vast experience: they have acquired over 100 financial advisory firms
  • With nearly 50 offices nationwide clients benefit from knowing that they aren’t far from a local office – hence the feeling of being looked after by a local IFA, as opposed a national operating from a city office
  • Over many years they know the sector inside out. They use this expertise and knowledge to assess what will work successfully for you and for them plus clients and staff
  • Their flexible approach means they can create a mutually beneficial deal structure and timetable.
  • They have a clear, tried and tested step-by-step process which includes a team of 17 employees dedicated to front end M&A process and 40+ employees who are involved in the overall M&A process
  • They pride themselves on delivering a client-centric, ethical approach: your clients will be looked after to the same standard that you have done for many years
  • There is no requirement to move clients to a centralised investment proposition as these can be left on open architecture
  • Clients can remain on existing charging structures and there is flexibility on frequency of review meetings.
  • DB Pension transfers will be considered, subject to due diligence

IFA Client Bank Criteria

  • Minimum Recurring Income of £200K+
  • Average client size should be £2000+ per household
  • Nationwide – all locations considered

Locations

  • Nationwide opportunities (all locations considered)

 Call us now on 0208 0044 154 or click Apply

Liability and Disclaimer

The information contained in our advert including any valuation calculations and percentage of up front and deferred payments are given in good faith and Premier Jobs UK Ltd uses all reasonable efforts to ensure that it is accurate; we give 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 Premier Jobs UK Ltd for any loss or damage which may arise out of any person relying on or using any information within this advert.

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