“Before I spoke to the team at Periscope I was dealing with one of the national IFA sales firms who were pushing me down the traditional multiple of income route. I am delighted with how the guys approached my business, explaining that there are other options available which suit both me and my clients.”

Mr Jones of North Wales approached us in summer 2022. Having built a successful practice over 3 decades, this gentleman had approximately 300 clients with £36M of AUM. His clients were largely split between what he called “smaller clients” and “top clients”, and fees charged were 0.5% and 0.75% per annum respectively.

The “smaller clients” of which there were 250 with AUM of £26M tended to hold smaller portfolios of up to £200,000 and servicing was essentially an annual review which was now conducted remotely.

The “top clients” accounted for the remaining 50 clients with £10M of AUM. These clients were more technical in nature and servicing was completed biannually on a face-to-face basis.

Maximising sale revenue for Mr Jones was key, whilst finding a suitable home for the two different client groups.

Under the traditional “multiple of income” sale at 3.5 times, the revenue would be £717,000. However, this would be payable £358,750 up front with balancing payments of £179,375 payable after 12 and 24 months.

At Persicope we helped Mr Jones identify the two client groups and the approached each one in separately – The smaller clients were sold to one company, and we negotiated a deal based on AUM which paid 4%. Of the £26M just over £20M was then moved to this company within 3 months which netted Mr Jones £800,000.

The remaining £6M of AUM and the £10M of AUM from his top clients were then sold to one of our larger IFAs who are focussing on higher net worth clients. This was completed on 3.5 times income multiple at £367,500. £183,750 was payable initially with the remainder payable in 2 instalments after years 1 and 2.

Mr Jones received £1,167,500, over £450,000 more than under the traditional sale route with almost £1,000,000 payable within 3 months.