“So, how much will you pay, and how?”

The inevitable question that we will be asked early in conversation is…
“so, how much will you pay, and how?”

The Valuation Basis

An assessment of the value of your business will be based on a few logical but key features, which include:

  • Client profile – quality of value – geographical spread – weighting of influence on the overall account portfolio.
  • The quality of business systems and controls
  • Compliance record – does the business carry reasonable regulatory risk.
  • Simplicity of transfer – usually the simpler the business to understand the more attractive it is.
  • Sustainability of profit – with changes that need to be made will profits be reasonably sustained.
Valuation Benchmark

The IFA market has a reasonably established valuation matrix, although valuations will fluctuate in the market from time to time, due to market conditions. For smaller firms (turnover of >£500,000 pa) – the valuation is normally based upon a multiple of recurring income. For larger firms with significant infrastructure, the valuation basis can then be calculated as a multiple of EBITDA (Earnings before Interest, Tax, Depreciation and amortisation).

Immediate Purchase – Elevation Financial Group will consider immediate acquisition.  Elevation will look to purchase your company or assets of the company on day one with a deal structure that typically includes a significant up front payment followed by completion payments scheduled over a 24 month period. We will always look to work with you to preserve a preferential tax position with regards to Entrepreneurs Relief. The make up of the business, will govern what infrastructure is transferred in. Our focus during the assessment process is to look closely at what resources will be needed to ensure that the client service relationship will be maintained.


Deferred Purchase – Elevation Financial Group are also able to work with firms that are looking to sell, but not yet. These firms may be aligned currently to network organisations that do not offer retirement planning facilities, and the owners are concerned that they are working smoothly towards a final sale as early as possible. In this case a value will be set from outset, subject to agreed parameters for the business to align with Elevation during the deferred period. Our deferred model allows for deferment up to 3 years.


The Process –  We will look to provide a valuation and an idea of how we propose to structure the payments, quickly after common interest is established. Our deals are prefunded through private investment, which is based on common market values. Due diligence is normally completed in house which tends to speed up the process. Then contracts are issued following formal Heads of Agreement being completed. The typical period between first meeting to completion is between 12 – 16 weeks.

Elevation Financial Group Ltd. Registered in England & Wales No. 07579685. Registered Address: Unit 1, Marlin Office Village, 1250 Chester Road, Birmingham, B35 7AZ.

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