Indicative range
Advice books are valued off ongoing advice revenue, because that income continues after the seller leaves. One-off and initial income adds less, because it does not repeat by itself.
Four things then adjust that base: the state of the file, the age profile of your clients, how concentrated the income is, and how much of each relationship is with you personally.
Carries most of the value. It is the income that continues after the seller leaves.
Counts for much less. It depends on the adviser who generated it.
Moves the figure furthest. Securo improves it while you are still running the business.
Sets the risk a buyer prices in: the share of clients who stay once you leave.
Equity & General’s terms follow due diligence on the actual book: the file, the client base and the contracts.
Under Securo you exit at no less than market value when you retire, on a floor agreed before you join.
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.