IFA book value market update

There has been a huge amount of coverage in the press lately about deteriorating values of client banks.

This is total rubbish.

Every sale Retiring IFA has transacted this year commanded at least a 1.5% of assets under management valuation and in some cases much more.

Anyone claiming massive drops in prices is frankly not very good at their job.

Market Update:

Current acquisitions searches include Yorkshire, Lancashire, Bristol, London and West Midlands for various national institutions that are keen to offer 1.5 – 2.5% of assets on a share purchase over 18 month terms and retain locations and staff.

Another client is looking across the North and Midlands valuing at 10 – 14 times EBIT and are keen to acquire strong regional offices.

The general thought is that we are 7 years behind the American market, which is now virtually all DFM based.

Conclusion:

In conclusion, prices are not dropping however there are only a limited amount of opportunities to protect your staff whilst exiting profitably as nobody wants 2 regional offices in the same county.

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