Intrinsic is launching a multi-million pound practice buyout scheme which will offer loans to advisers looking to make acquisitions.
The scheme will connect appointed representatives of Intrinsic looking to sell their business with those who are looking to expand.
Financial backing from Intrinsic’s parent company Old Mutual Wealth worth several million pounds will enable advisers looking to make an acquisition to borrow from the network at what it says are “preferential” rates.
The loans will be repayable over a period of seven years and incur interest at 3 per cent over Libor.
Both buyers and sellers must be part of the Intrinsic network to be eligible for the scheme. Buyers must have been appointed representatives for at least three years, and sellers for at least five.
Intrinsic says it will also carry out a number of quality checks to ensure firms looking to make acquisitions have the capacity to deliver the appropriate level of service to any new clients.
Firms who are interested in the scheme can register as a buyer or seller. After making criteria checks, Intrinsic will introduce any appropriate buyers to firms looking to sell.
It says it expects around 25 deals to complete under the scheme by the end of this year.
Intrinsic chief executive Richard Freeman says: “This is another example of our commitment to helping financial advisers grow their businesses and realise value from that business when the time is right. It demonstrates the value of us being part of Old Mutual Wealth.
“The practice buyout initiative will allow owners of successful financial planning firms to sell their business while crucially ensuring their clients continue to receive a high quality of service from an adviser within the Intrinsic network.”