National independent financial planner and wealth manager is actively seeking to acquire well-run and profitable IFA businesses with upwards of c£20m FuM or full/partial buyout available for large IFA firms
Our Client is a highly profitable National Independent Financial Advisory Group with revenue of £25m and AUM c.£4bn. They have 72 advisers and 245 staff in total operating from 20 offices. With the backing of a well-respected and well-funded mid-tier PE House plus mainstream bank they have funding in place to deliver their 3 to 4 year plan of acquiring 25-30 IFA firms.
Set up 15 years ago with a view to consolidating the IFA market they have many yearsâ€™ experience of making over 40 acquisitions of IFA firms and are considered one of the longest standing active national consolidators in the UK.
They have already been through the challenging period of integrating hub acquisitions unlike many other peers who still have these challenges to come. With a ratio of Support staff to Advisers of 3:1 your clients will have attentive Advisers who are suitably qualified to provide advice in all areas of financial planning
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 DFMâ€™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.
Sell and Retire at Completion or 1 â€“ 2 years after Completion
They are interested in acquiring financial advisory businesses where the vendor plans to retire at completion or 1 â€“ 2 year after completion. Equally, they are interested in vendors who wish to join them and further grow and develop their business with them.
They are flexible on deal structures and provide specifically tailored structures that meet the vendorâ€™s needs and requirements.
They pay up to 50% up front and pay the remaining consideration within two years. Deals under this structure are typically a multiple of between 3.3 and 3.8 times annual recurring income of between £130k and £2m.
Sell part of the business and stay on 3 â€“ 10 years to benefit from future growth
A second alternative option for businesses with EBITDA of typically £200,000 to £2m has been developed which enables the vendor to take some cash off the table to reflect their efforts to date, whilst retaining a significant notional stake which will be cashed when they decide to retire and trigger the second earn out. Attractive to those vendors who arenâ€™t quite ready to fully exit and, with our clientâ€™s assistance, wish to grow their business further. The multiple of EBITDA applied to the second earn out is the same as the first. The beauty of this option is the vendor has full flexibility on when they chose to retire in the future whilst also receiving cash up front and sharing in the upside on growth post deal.
To ensure there is a smooth transition of clients, our client will provide from existing resource or externally recruit new Advisers to shadow the Vendors to facilitate their retirement. The cost of these advisers will not impact EBITDA.
Acquisition Deal Value
IFA Client Bank Criteria
Call us now on 0208 0044 154 or click Apply
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