Advice firm sale prices up 20% due to 'voracious' demand

Well-run IFA firms that charge clients a standard 0.5% can get between three and a half and four times their provable recurring income, Spence said, 20% more than was the case in January 2015. He attributed the increase to an ongoing shift in supply and demand in the adviser acquisition market. "There are fewer quality vendors in the market but the acquirers remain as voracious as ever," he said. "Most of the acquiring firms are backed by venture capitalists. They have five years maximum to achieve a set figure of funds under management (FUM) and the figure is normally very high." ...