A long-established and profitable Directly authorised advisor business established and managed by a sole adviser now approaching retirement.
With c72 clients and £40m FUM, the business follows a 0.5% client charging model generating post-RDR recurring revenue streams of c250k and old-style commissions from protection policies of c£50k.
All clients are long-standing and residents of the Birmingham and Shropshire area, most retired or at retirement age.
Records are maintained in a computerised form – a low-risk business with huge commercial potential for an acquirer.
The Director would like to achieve a business sale and retirement within the next 6 months but is fully prepared to participate in achieving an elegant and seamless client transition/integration.
There are two staff members providing administrative support, each with intimate client knowledge and both available for ongoing employment if required, subject to contract and terms.
A market-rate valuation is reasonably expected with consideration passing from acquirer to vendor over an 18-24 month period.
With c£250k of recurring revenue and c£50k of commissions, a valuation in the band £800k – £1m is reasonably expected as a share purchase.