Welcome to
Retirement Solutions for IFA's

Key Features of Our Deals

Although there is nothing better than to give us a call, we have broken down the process into the key features of how we go about ensuring that your retirement is structured to create the best solution for both you and for Bright.

Valuation process
The valuation basis is calculated on a practice by practice basis. Key factors that determine the valuation of a business are funds under management, renewal income and client base. As an example, using the renewal valuation basis for an IFA practice, some of the recent purchases we have completed have been for multiples of between 2.5 and 8 of renewal.

Structure of purchase
Each transaction that we have completed to date has in the true sense of the word been unique. However there are a number of common features within each purchase and a typical purchase will be for a multiple of 2.4 – 4 times renewal paid over a two to three year period. Our normal practice is to purchase the goodwill of the business and not to take responsibility for historic advice.

Due diligence process
As part of the purchase we undertake due diligence on your business. This will invariably take a day to complete and will comprise a review of files, commission records, new business register and recent compliance reports.

Legal documentation
We have a suite of legal documentation that has been used for the IFA purchases to date. We do recommend that you take legal advice regarding the documentation but to undertake this towards the completion of the process to control costs. Copies of the documentation are available on request.

Existing files and clients
As part of the purchase we need to compile a database of your exiting clients. This is work that we can undertake on your behalf using our associated company, IFA Data Limited, or can obtain from your existing database. We do not want existing files and when starting to advise your clients prefer to start from the basic details contained on the database and then to expand our understanding of the client.

Handover process
A key feature of our purchase arrangement is that we require a structured and professional handover of clients and that we work with the vendor to achieve this. From experience this invariably takes a maximum of between one and two months to complete.

Registered Individual status
A number of the transactions that we have completed have been undertaken on the basis that the vendor joins Bright as a Registered Individual.

Protection for the vendor
As a standard feature of our purchase agreement we provide the vendor with a charge on their agencies to provide them with extra security until the full purchase price has been paid for the business.

FSA de-registration
Bright has experience of working with sole traders, network members, partnerships and limited companies in assisting them with de-registering.