IFAs 'can increase value 5x with assets model'

The chief executive of IFA-owned wrap platform Nucleus Financial says adviser companies could see a five-fold increase in their worth if they changed their valuation model. Under the current model IFAs expect to fetch a maximum of twice their annual turnover but, says Ferguson, quality advisers should demand 10-15% of their assets under management. Using his mathematics, a firm with a £1m turnover and assets under administration of £80-100m should be valued at £8m-£12m rather than around £2m. To unlock this value, Ferguson, who points to Hargreaves Lansdown as an example of what can b...