How to Value a
Wealth Management / IFA Business
N o two advisory firms are the same - each are unique, just like you and your clients. To provide a one valuation metric that fits all business models is unrealistic. Instead, a matrix of factors determines an achievable valuation.
Factors that influence valuation and their implications
Is this an asset or a share purchase / sale?
Client age demographics
Client charging structure
Client service proposition
"Sell & Go" or "Sell & Stay"?
Aggregate portfolio size
Attitude to "High Risk" product promotion.
T he above isn't exhaustive instead some complexities surrounding the acquisition, sale, and integration of an IFA's business that you should consider. All influencers on price.
As with any market the simple rules of supply and demand apply. A decade in this sector has taught us the best deals are the simplest where both sides to the transaction respect the clients' interests above all other factors.
If you would like to understand more how to value a Wealth Management / IFA Business as a buyer or seller why not contact us?