Adviser network ValidPath has launched a ‘match-making’ succession and acquisition programme designed to help advisers exit and retire.
The Client Buyout (CBO) Programme has been developed as a way for retiring advisers to achieve a sale and younger advisers to grow through client-book acquisition.
ValidPath will manage the transaction process, from feasibility and matchmaking to valuation, due diligence, financing and ongoing deal support.
Buyers are required to be ValidPath members, while sellers can be any adviser, from a registered individual to appointed representative or directly authorised.
Buyers can acquire and service a seller’s client base, while retaining full ownership of their business, ValidPath said.
They commit to a five-year plan that underpins the acquisition financing and can access a marketplace of vetted sellers or find their own opportunities.
Meanwhile, sellers receive an initial payment and deferred payments over two years.
With the average adviser now nearly 60-years-old, and with more than half planning to retire within the next five years, ValidPath said thousands of businesses and client books will need to be transferred or acquired.
Angus MacNee, CEO of ValidPath, said: “For IFAs that value independence, consolidators can be off-putting and DIY routes too complex. The ValidPath CBO programme offers a simpler, independent alternative, supporting retiring advisers to execute their succession plans while empowering the next generation to grow via client-book acquisition.
“We want to help hundreds of advisers to achieve their exit and retirement objectives. We want to help hundreds of advisers looking to grow their business. I am excited about the opportunity that the CBO programme has to support the broader community of independent financial advisers and across the full lifecycle of those starting, growing or exiting their business.”
More than 50 firms have already registered as part of a soft launch, the firm said.
Laura Handy, succession development manager at ValidPath and responsible for spearheading the CBO programme, said: “We know many advisers have the drive and capability to grow their business and support more clients but lack the M&A experience or support to move forward.
“We bridge that gap by helping sellers to value their business and execute their succession plans with buyers that are supported throughout the transaction process and with a financing package that makes acquisition-based growth achievable.”
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