Sell my IFA Business: How much is my IFA Business actually worth? - AsharHabib511/Prowriter GitHub Wiki

Many things affect when it comes to the question of how much is my IFA worth. I look at some of the most important parts, such as planning for the next person to take over, responsibilities, and data quality. If you're an advisor who wants to sell your business, you've been thinking about its worth. In the past, recurring income was two to four times the annual amount. It was used to determine how much it worth to sell my IFA. However, this rule of thumb only works well in today's market. The average age of advisers in the UK keeps going up. Selling to an advice partnership, consolidator, or aggregator has become a popular way for business owners to retire. They get money from the companies they worked hard to build up over many years. Besides this, many other, less well-known factors will affect how much a buyer is willing to pay in the end. Business owners should consider these things before they even talk about a possible sale. How good the data is If your info needs to be corrected, the prices that buyers are willing to pay may drop by about 25%. You can put your business in the best light possible with strong data. This is the only way to show who your clients are and how "sticky" your company's assets and income are. This goes for every part of the business. Well, this includes showing how new business and growth prospects are progressing. Planning for succession In the end, you want to be able to show that your business can keep growing even without you. You're already ahead of the game if you can do this. Look at it from the buyer's point of view. Do customers deal with the company as a whole or mostly with one person? The goal is to show that you have named successors who can keep building that wider relationship with your brand. Additionally, you want to show that clients can talk to different people in the business, such as administrators, paraplanners, and so on. You must be honest about what that means if you don't have that technology available. Are you willing to take a 25% discount in exchange for a quick cash sale? Thoughts on liability One more thing in sell my IFA business is whether you want to sell just the goodwill of your business or the whole company and all of its stock. An acquirer will want to lower their risk as much as possible. By taking on responsibility, sellers make it clear that they are sure the business is sound enough to handle a few complaints. This can help you get a better price. A warning, though: the regulator can "see through" a deal and decide where it thinks the responsibility lies. Understandably, many sellers want to release all responsibility and get paid in equity. However, it's common for the seller to refrain from insisting on indemnities and warranties.