Speaking at Platforum’s third conference in London last week, Easter said the only important thing to consider when acquiring an IFA business is whether or not it is successful, not what type of platform it uses.
He said “I do not believe that platforms can change our market. I think IFAs can and they will adopt the platform that will support them. It is not a platform that adds value to a business, it is the business plan and management of that business.”
However, he added that if an adviser fails to adopt a platform by 2012 it will not have a business model.
Speaking during the same debate, Threesixty partner Phil Young said platforms are useful for servicing clients and outsourcing administration but are not the “be all end all” of creating a saleable adviser business.
He said: “In terms of how a platform can influence an IFA’s exit multiple, it adds absolutely nothing whatsoever to the value of an IFA business.”
Young said the elements which make for higher exit multiples include financials, quality of client bank and quality of the advisers in terms of productivity and compliance.