02 920 494 495 Member Login

Succession
Solution

Succession Solution

Get
Started
Get Started

Succession
Solution

ssb_1_mobile
Get Started
Swipe down

The Succession Solution for
Independent Financial Advisers:
The Alternative to Consolidation

The ValidPath Succession Solution enables Independent Financial Advisers to retire on their terms, achieve a capital event, support clients in their best interest and transition ownership to the next generation of financial advisers.

Whether you are ready to exit now or want to plan for the future, we can support you through the entire process from succession planning to operational transition to business exit. 

  • Transition regulatory and operational responsibilities
  • Achieve a capital event and retire on your terms
  • Preserve independence and support clients in their best interest
  • Transition ownership to the next generation of financial advisers
Whether you are a single-adviser, multi-adviser firm, Appointed Representative or Directly-Authorised, we can support you via our independent succession solution

INDEPENDENT

We are committed to preserving independence and supporting independent financial advice. Firms and advisers can continue to support their clients their way and in their best interest with minimal disruption or distraction.

COMMERCIAL

We facilitate a market-aligned ‘capital event’ to enable principals to retire on their terms while preserving their client relationships and empowering the next generation to become business owners.

TURNKEY

We manage the entire process from feasibility to valuation to transaction, and then financing and all ongoing administration. All finance is provided, and no equity or personal guarantee is required.

How it Works

I AM READY TO EXIT NOW
I WANT TO PLAN FOR MY EXIT LATER
For business owners who want to exit now, we can facilitate the sale and purchase of your IFA business so you can achieve a capital event and retire on your terms while empowering the next generation of financial advisers to become business owners.
The basic commercial terms see you receive up to 80% of the total consideration within 6 to 18 months (depending on the retirement plan) with the final deferred consideration paid at 36 months.
We provide the finance, manage and support the entire process from feasibility to diligence, valuation to transaction, and then financing and all ongoing deal administration so the next generation of financial advisers can focus on what they do best: building the business and servicing their clients.
For business owners who want to plan for their eventual exit or retirement, we can support you through the entire process to develop and then implement a tailored succession plan.  This can include:
  • Identifying or supporting a suitable successor manager
  • Transitioning regulatory and operational responsibilities
  • Feasibility, diligence and a business valuation
  • Supporting growth to achieve a higher exit value
  • Structuring and financing the business sale and purchase
  • Transitioning ownership to the successor manager
We provide the regulatory and business infrastructure, support the entire process from succession planning to operational transition to business exit and provide all financing and ongoing business support.  The best time to start planning is now (!), and hundreds of business owners believe ValidPath provides the best proposition for their businesses to operate, thrive and achieve their succession and retirement objectives.

The Succession
Solution provides:

  • Succession plan to exit now or exit later
  • Framework to transition regulatory responsibilities
  • Market-aligned ‘capital event’ for retiring owner
  • Opportunity for next generation to become owners
  • Independent advice framework (platform & provider agnostic)
  • Minimal business, staff and client disruption
  • All finance & administration provided
  • No equity or personal guarantee required

Benefits for Selling
Principals:

For selling principals
you access:

  • Ability to retire on your terms and timeframe
  • Majority of the consideration within 6 to 18 months
  • Ability to preserve your business legacy
  • Way to support the next generation of advisers
  • Confidence that your clients will be treated well

Benefits for Successor
Managers:

For successor managers
you access:

  • Opportunity to become a business owners
  • Opportunity to build a profitable IFA business
  • Equity-aligned remuneration and bonuses
  • Fully-funded solution (no PG or equity required)
  • Full regulatory, business and back-office support

5 Steps to consider when selling your IFA business

5 Steps to consider when selling your IFA business

image 14

For most business owners, retiring from or selling your business is a once-in-a-lifetime event, and it is always important to consider what is important to you and what you are looking to achieve so you can plan for the future.  To assist with the process, we have put together five key steps that we feel should be considered as part of your exit and retirement planning.

DOWNLOAD
image 14_mobile
sussesion-sulution-3__tablet

SUCCESSION FAQs

In considering a new approach for exit and succession, what is important?
  • Provide a ‘liquidity event’ for selling IFAs
  • Be independent: platform & provider agnostic
  • Support the current modus operandi of the firm
  • Be client-centric and non-disruptive overall
  • Support aspirations of ‘Successor Managers’
  • Be simple and aligned for all stakeholders
  • Provide a complete turnkey solution

General Information

Yes. It is fully-funded and operational.

The succession solution has been developed over 18 months specifically to support IFAs. ValidPath has been committed to independent financial advice and supporting independent financial advisers for over 20 years. ValidPath is part of the Rimbal group that operates multiple FCA authorisations, a captive insurance company, technology development and an internal financing vehicle. Our internal structure and capabilities in combination with a having a client and IFA-centric approach has led to the ValidPath succession solution.

The succession solution is available to current and future Members (i.e. Appointed Representatives) of ValidPath. You may currently be an Appointed Representative, Directly-Authorised or indeed working as an financial adviser for a regulated entity, we can accommodate all these scenarios.

Yes. Due to how the solution operates, it will be a requirement to join the ValidPath IFA Network and transition to become an Appointed Representative. This has additional benefits for you and your team such as utilising the ValidPath infrastructure, services and back-office support so you can focus on servicing clients.

Yes. Due to how the solution operates, it will be a requirement to transition to the ValidPath IFA as an Appointed Representative. This has additional benefits in being able to use the ValidPath infrastructure, services and back-office support so you can focus on servicing clients.

Yes. There is a requirement to commit to the business through a services agreement and potentially to make an income “sacrifice” contribution over the term.

Yes. ValidPath is part of the Rimbal group. Rimbal is supported by one of the largest single-family offices in the US and Europe that invests in financial services firms globally and with investments that include Credit One Bank, Bamboo Loans, JaJa Finance and Zopa Bank. Rimbal is capitalised to fund the ValidPath Succession Solution.

We can support a wide range of business circumstances that include:
  • Single adviser firm seeking an exit
  • Multi-adviser firm supporting internal succession
  • Both self-employed and employee structure
  • Firm or advisers seeking to sell their client book
  • Silent partner shareholder seeking a return
  • Firm/IFA seeking incremental acquisitive growth

Successor Managers

No. If you don’t have a suitable internal or external candidate to take over the business, we can introduce you to one of our Members who are looking to grow their business.

A Successor Manager can be one or more IFAs within the firm, a local IFA known to the firm or a current Member of ValidPath that is looking to grow their business.

No.

Yes. The Successor Managers will be directors of the regulated business and be responsible for the day-to-day running of the business and delivery of the business plan.

The Successor Managers(s) commit to run the business and deliver the business plan in return for an equity share in the business paid from the retained profits of the business over the 36 month period. The Successor Manager have the option to acquire 100% of the business at month 36.

Commercial

The payment profile will vary to reflect the deal structure and the requirements of the retiring Principal, however, will typically see up to 80% of the total consideration paid within 12 months with the final payment of 20% being made at 36 months.

Yes. We can facilitate an agreed retirement timeframe that takes into account the objectives of the seller, Successor Manager and transition plan of the business typically within 6 to 36 months.

No. We are committed to preserving independence and supporting independent financial advice. Firms and advisers can continue to support their clients their way and in their best interest with minimal disruption or distraction.

We work with the Principals to understand their adjusted-EBITDA (i.e. the profit the business would generate after adjusting for any exceptional costs and retiring Principals’ compensation)
We work with Principals and Successor Managers to understand the business’ financial projections and general business plan. The valuation is then agreed based on a multiple of the adjusted EBITDA taking into account the historic and projected growth, characteristics of the business and market conditions.

Learn more about the ValidPath Succession Solution

Get Started
Get Started
Get Started