Buyers only want IFAs with minimum 30% recurring income

According to the asset manager, recurring business is being viewed as firms' most valuable asset because it represents the most secure future income stream it can offer. It adds although recurring income has always been a key consideration for acquirers, it has taken on new significance as a result of market conditions. "Acquirers are placing a high value on firms with a high proportion of recurring revenues such as trail commission and fees that are contractually payable," the report reads. "As a very broad rule, acquirers favour firms where at least 30% of its revenue is recurrin...