retiring-ifa
retiring-ifa
Are you a Retiring Independent Financial Advisors or looking to sell your IFA business within the financial services industry ?
Berkeley Cannon’s centre of business is in Mayfair, London. We specialise in working with retiring ifa's to provide a competitive review and valuation of their business to present to our established portfolio of ifa's acquirers.
Berkeley Cannon are financial advisors specialising in wealth management services with valuations of between £250K and £100 million. Our ifa's executive team identify the unique selling points of retiring IFA businesses and present them to potential IFA acquirers. Our London staff are chosen for their academic IFA knowledge and experience. They have backgrounds with leading investment client bank, legal institutions and accountancy firms so understand the needs of retiring IFA sellers and buyers and how much an established London based IFA company is worth in the current market.
There are a number of stages to the retiring IFA sales process:
Review - Exploring the value of the retiring IFAs business is the first step. Our staff diligently work to develop a thorough understanding of the retiring IFA company assets and offer a review and valuation based on our research as what an established London IFA business might be worth to a prospective IFA acquirer. If you are looking for a Retiring Independent Financial Advisor or retiring adviser in your area contact us today.
Instruction – Once the retiring IFA,decides to move forward with Berkeley Cannon to sell their London based IFA business, we can assist at no cost associated with the research and creation of both of Information Memorandum.
Memorandum Production - We create both a summarised 1 page Information Memorandum (IM) and detailed IM to present to potential IFA acquirers. A detailed IM is usually 12-20 pages long and forms the core of our marketing material. The summarised 1 page presents a biography of your business, USPs and key assets to pique the interest of potential IFA acquirers.
Identify suitable IFA Acquirer – We then in a targeted manner send a focused summary to your most likely acquirers, this is usually done on a no named teaser basis. If they express an interest in your business based IFA company, we send an NDA (Non-Disclosure Agreement) before we send them a full IM, so the potential IFA acquirer has all the information needed to decide whether they want to meet with the retiring IFA seller and are prepared to offer a purchase price in the region of our estimated value. In many cases we do not need a new NDA as we have one’s in place already due to our established relationship’s with these buyers and long Deal Histories, so when we make our recommendations, you know they are with proven parties we trust and one’s that we know take confidentiality seriously.
Meeting - Once the buyer has signed the NDA and has received and read the detailed IM and we liaise with the retiring IFA business owner to organise a meeting. IFA acquirers may present a multitude of offerings from share swaps, to earn out agreements, to full sales on completion date, servicing clients, advice and wealth management.
Signing Sales Heads of Terms – The retiring IFA will provide some pre offer information for an acquirer to present an offer based on the value of the London based IFA business. The Heads of Terms provide a framework for the subsequent sale documents. We normally advise up to a week “cooling off” period to ensure both parties are happy to proceed because pulling out after Heads of Terms have been signed can incur a cost. It is important that both parties understand the earn out agreement and we are confident that the expectations of both parties are achievable.
Due Diligence - This will usually take 4-8 weeks including the time taken to draw up the IFA share sale (or asset sale) agreements and NDA documentation. The IFA acquirer then reviews all the information and confirms that they are satisfied with the accuracy and terms of the detailed IM. A completion date is agreed and worked towards.
Completion - On completion the retiring London IFA seller will receive funds from the acquirers solicitor to his account or through his own solicitor, the costs are usually paid by the buyer and do not affect your consideration.
Berkeley Cannon are highly experienced and qualified to assist retiring IFAs in London throughout the business sales process. Our fee structure is commission based, so we ensure there are multiple suitable IFA acquirers look at yourIFA business. Our professional and experienced IFA advisers are only a phone call away.
We are familiar with our portfolio of established IFA acquirers and have every confidence we can secure Retiring Independent Financial Advisors wealth management company giving the best price for their assets/shares buying and selling in the current marketplace.
Retiring IFA Wealth Management
Contact us via our enquiry form below or visit our LinkedIn page.
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Berkeley Cannon's are a Mergers & Acquisitions successful firm in the UK with a team of professional financial advisors specialising in client bank, wealth management and are financial advisors. If you are looking for a person relying on a new business and require such information about investments and advice, finds and management speak us today. Read More
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Retiring IFA FAQ's
FAQs About Retiring IFAs and How They Can Benefit Your Business
1. What is a Retiring IFA?
A retiring Independent Financial Adviser (IFA) is a financial professional who is stepping back from their advisory role, either due to retirement or transitioning to a different stage in their career. They may be looking to sell their business or transfer their client base to another adviser or firm.
2. How Can Acquiring a Retiring IFA's Business Benefit My Firm?
Acquiring a retiring IFA’s business can help you quickly expand your client base, increase revenue, and strengthen your market position. It also allows you to inherit established client relationships and potentially gain access to specialized financial expertise.
3. What Steps Should I Take to Acquire a Retiring IFA's Client Base?
- Identify Suitable IFAs: Look for IFAs in your region or specialization who are nearing retirement.
- Due Diligence: Perform thorough due diligence to understand their client base, business practices, and financials.
- Negotiate Terms: Agree on terms for the acquisition, including the client transition process and financial arrangements.
- Client Communication: Work with the retiring IFA to communicate the transition to clients and ensure they are comfortable with the change.
- Regulatory Compliance: Ensure all regulatory requirements are met during the transfer process.
4. How Does the Transition Process Work?
The retiring IFA will typically introduce you to their clients, explaining the transition and providing reassurances about the continuity of service. You’ll work together to make the process as smooth as possible, addressing any concerns clients may have.
5. What Should I Consider When Buying a Retiring IFA's Business?
- Client Demographics: Ensure the client base aligns with your target market and service capabilities.
- Business Valuation: Understand the value of the business, including the client book and any other assets.
- Transition Period: Discuss the length and terms of the transition period, during which the retiring IFA may remain involved to help with client handover.
- Legal and Regulatory Considerations: Make sure you are fully aware of any legal or regulatory requirements, including license transfers and client agreements.
6. Will Clients Stay with My Firm After the Transition?
Client retention largely depends on how well the transition is managed. Open communication, maintaining the quality of service, and a smooth handover process are crucial in retaining the clients of a retiring IFA.
7. Can a Retiring IFA Help Train My Team?
Yes, in some cases, the retiring IFA may be willing to provide training or consultation to your team during the transition period. This can help ensure continuity in the level of service and maintain client confidence.
8. What Are the Costs Involved in Acquiring a Retiring IFA's Business?
Costs can vary widely depending on the size of the client base, the value of the business, and the terms of the acquisition. These may include a lump-sum payment, ongoing commissions, or a share of future revenues.
9. How Long Does the Transition Process Usually Take?
The transition process can vary but typically takes a few months to a year, depending on the complexity of the client base and the agreement between you and the retiring IFA.
10. How Can I Find a Retiring IFA Looking to Sell Their Business?
You can connect with retiring IFAs through industry networks, professional associations, or by working with brokers who specialize in matching IFAs with potential buyers.
Berkeley Cannon's Mergers & Acquisitions professionals firm specialising in the financial services market and offer a diverse range of business skills together with many years of experience operating within corporate environments. We recruit our staff for their academic prowess, integrity location across the UK.
