Selling your wealth management or IFA business?
Fram employs some of the most experienced wealth management recruitment professionals in the country. Over the years, we’ve seen a trend for firms to move away from hiring advisers with books of business to firms making acquisitions.
Hiring advisers with books still makes great sense, but to move the dial for many firms, an acquisition is a more obvious and predictable route. Indeed, whilst it many sound grand, having a structured M&A programme could be the key to riches for many wealth management entrepreneurs.
Fram works with some of the leading names in the wealth management acquisition industry and, perhaps more interestingly for vendors, some exceptional “off radar” firms.
Valuations, legals, deferred compensation, selling shares, selling assets. It can all be quite confusing for sellers, but in reality, a sale is time consuming, but often easier than people think. It's an emotional time though. Business owners often put their heart and soul into building their business and it often defines their professional life.
Below is a brief outline of some basic things to consider.
Pre-sales process
Before embarking on a sales process, we’d recommend getting your data and financials information in order. Prospective buyers will assess the financial health and profitability of your business, the need for accurate and up-to-date financial records (p&l, balance sheets, and cash flow statements) is essential.
You also need to understand who your clients are. Firms will have a target client base in mind. Therefore, the number of clients, the assets under management, and the retention rate, will be of interest to clients. A diverse and loyal client base is worth its weight in gold.
One concern of firms is regulatory compliance, whilst the seller is normally responsible for previous advice, and will need to take out, run-off cover, buyers still want to buy firms who have a good standing with the FCA.
The final part of presenting your business well is your team. Are they well-qualified, long-serving, and able to ensure the business suffers no disruptions.
Valuations
Valuing a financial adviser business can be a complex process. There are many different methods used and include:
- Recurring income valuation
- EBITDA valuation
- AuM based valuation
- Market-based valuation
Why work with Fram if selling your business?
Our experienced team can connect you with a range of suitable buyers. We’re very experienced negotiators and we also understand that not all vendors want to retire. Some may want to take some risk off the table, but to be part of growing their business with an experienced investor. We understand the human and emotional element of a sale.
Equally, we also understand market rates and what the aims of both parties in a transaction are.
We allow you to focus on running your business in the run up to a sale by proving you with extra support. A sales process can be time consuming and so having a partner to support you through this is key.
About Fram Search
Established in 2010, Fram Search is a specialist financial services recruitment consultancy. We support financial planning firms, wealth managers, discretionary fund managers, private banks and family offices across the UK and internationally.
Our Wealth Management practice recruits across financial advice, investment management, paraplanning, compliance, operations, sales & marketing, and executive leadership functions. We provide both contingent recruitment and executive search services, helping firms attract high-performing advisers, strengthen support teams and build leadership capability. Our consultants combine deep market knowledge with extensive networks developed over many years within the wealth management sector.
Please contact us on 01525 864 372 / [email protected] to learn more.
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