Exit successfully with private equity

Private equity-backed buyers are experienced and well capitalised, which could lead to a successful exit.

Private equity is very interested in the financial planning and wealth management space. With clients paying ongoing fees, high persistency rates, the resilience of the sector and so many advice firm owners set to exit in the coming years, it isn’t hard to see why!

There are now over 30 private equity-backed buyers growing through acquisition. Each has their own ambitions and nuances, but one thing in common: a desire to grow quickly and at scale.

They typically operate a ‘buy and build’ strategy. Some may be open to buying businesses / client banks of any size where they have the structure and resources to integrate successfully. In other circumstances or in certain locations, they tend to be appropriate for larger businesses with over £150 million of assets under management, and a team in place from which they can grow.

Using a private equity-backed buyer can also be an attractive route for business owners who want to take some risk and capital off the table, and have ambitions to grow and either retain equity or ‘roll’ into the acquiring firm. This can allow firms to grow further, have access to capital or be part of a new journey, leading to a second capital event in the future.

Private equity-backed buyers are likely to have their own investment proposition, and perhaps their own platform. Either initially or over time, there will be a requirement to align your firm’s brand and client experience.

These types of buyers have significant experience in buying businesses, and the operational capacity to onboard multiple firms at the same time.

They can put forward favourable deal terms due to their access to capital, ambitions for growth and arbitrage potential.

How we help

Understand what you want

We can’t help you achieve your objectives without understanding them. So that’s exactly where we start. This means we’re both working in partnership towards meeting your goals.

Making the right choice

You only sell your business once. You’ve got to get it right. We’re independent, and we work for you, so we’ll give you an unbiased and honest list of potential options. We may encourage you to speak to a range of types of buyers for that reassurance you are making the right decision.

Maximising value

Putting the hard work in now pays off when due diligence starts. We’ll prepare you for the process ahead, provide time for improvement and help you to make the best first impression. This will instil confidence in buyers, open doors and improve value.

Acting for you, not the buyer

When it’s appropriate, our Partner Route means we represent you and not the buyer. This option can open up a wider range of opportunities and means we can negotiate all aspects on your behalf. Remember too, we never take a fee from both parties.

A partner through the process

We’ve been in your shoes and know how stressful the process can be. Our knowledge of running a regulated business, as well as the acquisition landscape, means we are perfectly placed to remove the pressure on you and deal with the inevitable bumps in the road, so you can get on with the day job.

Building your team

We’ve built up a strong network of professional connections who can help you build and exit your firm, all with significant experience in this regulated space. From outsourced suppliers to legal and tax experts, these are all at your disposal. As you’d expect, we never take any fees for making an introduction.

We’ve been in your shoes

Victoria Hicks and Brian Hill have been in your shoes. Over the past few years, they’ve both successfully exited their advice businesses. Now, their mission is to help advisers, planners and wealth managers do the same by providing help, insight and support that sellers haven’t previously had access to. At the same time, the pair want to enhance the profession they care greatly about and which provides such value and education to clients.

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