IFA Specialist Legal Services at Preferential Rates
Benefit from a No Obligation, Free Legal Quotation.
- Extensive IFA transaction experience increases your safety & security.
- Preferential Rates: From £3,000 Fixed Investment for Buying or Selling
- Focussed and Efficient Service to ensure you secure your deal
- Free Initial Consultation
- Extensive use of Phone and Email to Keep Costs Down
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THE LEGAL PROCESS OF SELLING AN IFA BUSINESS
There are two ways of selling your IFA business. If you run the business through a limited company, you can sell your shares in the company. Or alternatively you can sell the assets that make up the business out of the Company.
Either way, a buyer will want you to answer some early basic questions about the business, which it will use to work out its offer and we would expect it to sign up to a specific agreement to keep the information you give it confidential.
A deal would be negotiated and would ideally be summarised in non-binding “Heads of Terms”. This document is prepared so that the lawyers are clear on what needs to go into the binding sale agreement. For financial services businesses, a valuation may be based on profitability (EBITDA) or a trail commission multiple. Part of the sale price may also be deferred, related to future profitability of the client/commission bank.
In parallel to negotiating the detailed sale agreement, the buyer will undertake a more detailed examination of the business (known as “due diligence”). Our Legal team can help here by explaining what can sometimes seem an overwhelming process - you will need to provide detailed information on all aspects of the business. Particular attention will be paid to FSA and regulatory matters and to commission arrangements.
Everything comes together at “Completion”, where the final documents are signed and the money paid across. This is usually at the buyer’s solicitor’s office.