The guarantee business exit strategy scheme will offer four times the gross value of an IFA’s ongoing business, as calculated through recurring income.
It has been made available to all of True Potential’s 183 client firms and will be offered to new firms wanting to work with them. It does not require IFAs to stay at the firm for a minimum transition period or retire from their positions.
True Potential managing partner David Harrison says: “The guaranteed value that we can fix at the outset gives a business owner a clear path and will allow them to plan definitively.
“When we looked at what other firms were doing with their practice buyout schemes, we saw that many are using a headline figure and then making a net reduction, others are requiring three-plus years of service and others are demanding retirement from the industry. We do not believe this is either fair or what the IFA wants.”
IFA sole trader Tony Catt says: “A lot of advisers do not have an exit strategy and so anything that helps them on that score would be more than welcome.”