The owner of this IFA business is looking to sell their firm and retire. This business is authorised via a network who stand behind all the advice given meaning there is little risk associated to the acquirer. The owner is open to offering support during the hand-over period. They are willing to help introduce the new adviser to their clients and explain their reasons for current recommendations to minimise attrition.
The current FuM of the business is c£35m with an RI of circa £181k. The firm currently has an ongoing charge of 0.5% however some clients have moved to 0.75%. Should all clients move to 0.75%, the RI of the firm is estimated to rise to between £220k and £225k. They have 108 active households with an average holding of c£327k and an average age of c61.
The consideration price for this firm is 3.5x to 4x of RI via share purchase.