Simon Goldthorpe: How much is your IFA business really worth?

Liabilities and succession planning

clock • 4 min read

A lot of factors contribute to the value of a financial advice business. Simon Goldthorpe takes a look at some of the most important elements, including succession planning, liabilities and quality of data...

If you're an adviser thinking about selling your business, then you've probably been pondering how much it's worth. The age-old way of valuing an IFA firm is based on recurring income - typically between two to four times the annual amount - but there are major flaws in this rule of thumb in today's market. With the average age of advisers in the UK continuing to rise, selling to an adviser partnership, consolidator, or aggregator has become a key means of allowing business owners to retire and realise value in firms they have worked to build up over many years. While a calculation...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your Business

Advice firms see client onboarding numbers double over last year

Advice firms see client onboarding numbers double over last year

Advisers more than doubled number of clients onboarded each week

Isabel Baxter
clock 15 July 2025 • 2 min read
Can consolidators conquer Ireland?

Can consolidators conquer Ireland?

Region is moving higher up buyers’ wishlists

Justin Cash
clock 15 July 2025 • 3 min read
Editor's view: Celebrating excellence in a profession that cannot stand still

Editor's view: Celebrating excellence in a profession that cannot stand still

The editor's Friday Night Takeaway from 11 July

Jen Frost
clock 11 July 2025 • 3 min read