How the exit is agreed
Equity & General acquires the assets under management at no less than market value at the point you retire, on a floor agreed in writing before you join.
Equity & General acquires the assets under management at no less than market value at the point you retire, on a floor agreed in writing before you join.
A firm sold because the principal has had enough, because health has made the decision, or because a deadline somebody else set is a fortnight away, is sold from a weak negotiating position.
Under Securo the basis of the exit is agreed at the beginning, when nothing is urgent and every alternative is still open to you.
Equity & General will acquire the assets under management, at no less than market value at the point you retire. That floor is agreed in writing before you join.
The date and the structure are agreed with each firm, including how much is paid up front and what is deferred. Forty households need a different arrangement from four hundred, and an adviser who wants three more years of two days a week needs a different shape from one who wants a clean stop.
Five things determine what an advice business is worth. Four of them improve over the course of the programme, so the work starts years before you intend to stop.
Ongoing advice fees on assets that are staying put, and how much of the income recurs year after year.
Reviews on a cycle, suitability evidenced and Consumer Duty demonstrable. This is the factor Securo improves most.
A client base entirely in drawdown is a different asset from one with a younger generation behind it.
How much of each relationship is with the firm, and how much would leave with you.
The share of income that comes from the ten largest households.
If, when the time comes, you and Equity & General cannot agree terms, your clients are novated to a host you choose and you go your own way. It is written into the arrangement from the start, so you can take a higher offer elsewhere if one exists.
Equity & General’s immediate route is Fiducia: acquisition of your clients now, full novation, and a handover on your timetable. It runs through Advisor Group.
The valuation tool builds an indicative range from your own recurring income and the shape of your client base in about two minutes.
The readiness check asks twelve questions on how much of the business would still work if you were not there.
Steven Bates, Director of Advisory at Equity & General, takes the first call with every adviser. Ring him on 020 8396 0486 or send a short note about your firm.