Firms which manufacture as well as distribute could offer an attractive exit route for you and your clients.
Vertically integrated firms may also provide their own platform or investment management services, as well as financial advice. This allows them to control and profit from multiple income streams.
‘Vertical integration’ can have negative connotations attached to it, with the perception that it will mean clients are moved into a different proposition at any cost. But in common with their private-equity cousins, not all vertically integrated businesses are the same. So it’s advisable to look beyond the term itself and under the bonnet to understand the likely outcome for both your clients and staff.
Indeed, a vertically integrated buyer could offer the best exit where there is an alignment in investment philosophy, charges can be reduced for clients or if you are already outsourcing your investment management to them.
Vertically integrated buyers tend to have significant experience in acquiring businesses. If they can benefit from multiple income streams, they may put forward attractive financial offers. And if your investment proposition is already aligned, there is potentially less disruption for your clients.
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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