The owner of this business is seeking to retire and is therefore looking for a buyer. The firm is an Authorised Representative of a Financial Adviser Network and has around £30m FuM which generates a recurring income of c£164k.
Their current number of households is 33 with an average holdings per household of £912k (£600k+ excluding the largest client) and an average client age of 70 years old. It is important to the seller that their clients are well looked after which is why they are keen to remain with the business in an Ambassadorial role post-sale to ensure a smooth transition.
This is a clean, low-risk business with no upheld complaints or FCA compliance breaches. As the firm is an Authorised Representative, any liability for past advice given would remain with the Network.
The ideal price for this firm would be a multiple of 3.5x or above of recurring income via asset purchase.