Are you a current Financial Adviser looking to alleviate pressure by segmenting your clients and selling your lower tiers. This will help you to achieve semi-retirement or focus on growing your high value clients, plus receive a highly competitive multiple of recurring income.
Our client company have a team of highly trained, centrally based, FCA regulated financial advisers, advising a broad range of clients with differing needs, circumstances and goals. These range from pensions, personal wealth management, ISAs and insurance/protection products. They have gradually evolved by acquiring IFA businesses, a process they are looking to continue with ambitious targets in the coming years, and have developed the requisite base to provide a highly competent and affordable financial planning service to retail clients. The founder of the firm has founded both private and listed companies, including a financial advice firm and a foreign exchange brokerage as well as being a member of the Institute of Chartered Accountants.
With substantial funds available, the Group is ready to enter their growth phase through the steady take-on of client bank acquisitions with a target of 50 – 100 asset purchases of typically £5m – £15m each of Funds under Management in order to attain their goal of £1bn by 2024.
As their business is designed to provide financial planning advice to the ‘middle market’ of UK retail clients; they are very much interested in acquiring your ‘B and/or C’ clients who typically hold £15,000 to £250,000 of investable assets. By segmenting your clients, not only will you receive a capital event for the sale of your lower net worth clients; it will provide you with the opportunity to invest more time in your HNW connections!
This would also suit fully retiring IFAs whose client bank is predominantly made up of smaller investors up to £250k and where their clients would be comfortable with centralised reviews by qualified Financial Advisers with an excellent track record of client retention.
Why this Opportunity is different to other acquisition deals?
Most acquirers are only interested in IFAs selling their entire client bank or having to join the firm for 1 – 2 years before the sale goes ahead. Many IFAs do not want either of these scenarios and end up doing nothing.
- Typically 3.25x trail / ongoing fee income with potential to go higher
- The purchase price is paid over 3 stage payments. Typically, this is 50% on completion, 25% at the first anniversary and 25% at second anniversary.
- Will consider a long earn out arrangement on old legacy trail – ideal for advisers with lots of pre-RDR investments
This is an ideal opportunity if you:
- Are looking to focus your time on developing your HNW / UHNW connections
- Would like a capital event now through releasing the bottom end of your portfolio at full market rates
- Want to remain advising your ‘A’ clients through your existing business set up
- Considering semi-retirement and would like to offload some clients now to ease the pressure
- Want full retirement where your clients are typically lower value i.e. £50k to £250k of investment holdings but still want a highly competitive offer with a proven track record of high retention
- The clients you release will receive a dedicated Financial Adviser to undertake their financial planning reviews
- Clients will be provided with an efficient and competitively priced offering in the ‘middle market’ of UK retail clients meaning that client retention is high – this can be demonstrated in the high retention rate of 99.2% which has been achieved by clients remaining in ongoing advice proposition, since inception.
- Our client operates from prestigious offices in the Square Mile, London
- As well as an innovative and dynamic founder, the company has a team of senior industry experts:
- Company Director – previous experience of being non-executive director of a quoted independent financial advisor network and being a fellow of the Chartered Institute of Securities & Investment
- Senior Investment Manager – previous experience of working with renowned city fund managers, specialising in investment management with a focus on managing portfolios for private clients, trusts and charities and holding a is a chartered member of the Chartered Institute for Securities & Investment.
- Compliance Officer – a qualified lawyer and business consultant with over 25 years’ experience with his core skills being regulatory compliance monitoring and tracking systems
- As well as having open architecture as a directly authorised IFA firm their investment proposition includes 3 model portfolios as well as a bespoke DFM offering.
Contact us: Call us now on 0208 0044 154 to further discuss this opportunity, or email us at [email protected] with your interest and details to receive a call from one of our Senior team.
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