Continue as you are for up to 2 or 3 years, with the focus on selling to the acquirer for 6 times the average of renewals and net profit. During that time, you are left to run the business as usual, while the acquirer takes away the back office and its costs.

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Offer

Plan towards Retirement

Sell 75% of the business straight away for 3.5 times renewal income, then work with the acquirer to increase the remaining 25% over up to 5 years before selling this part to them. This option allows the seller to retain their identity going forward.

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Offer

Sell and Stay

The business is valued under a structure similar to Sell and Leave, but the IFA or owner can stay on in an employed or self-employed position with the acquiring company.

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Offer

Sell and Leave

The business is valued at between 3 and 4 times recurring income revenue. This is usually paid over a 2 or 3 year earn out, with up to 40% paid on completion and the remainder paid over the following 2 or 3 years. The IFA or owner can sell and leave the business straight away.

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About

Hours and details

Morgan Heath advises IFA and financial planning business owners on succession and acquisition opportunities. It offers flexible deal structures, from outright sales and deferred buyouts to phased retirement plans that allow sellers to retain their identity or continue working with an acquiring firm.

Business and professional services