Seven Thousand IFAs Investigating the Value of their Business

Aug 03, 2009

  • Over 7,000 IFAs have downloaded a guide to valuing an IFA business, since its launch less than a month ago

3rd August 2009: Over 7,000 IFAs have downloaded J.P. Morgan Asset Management’s latest report, a guide to valuing an IFA business, since its launch less than a month ago. The huge response, potentially representing almost two thirds of the UK’s registered IFA firms*, shows the very real decisions IFAs are facing about the future direction of their businesses in a period of intense regulatory change and economic uncertainty.

‘Reaping Rewards: assessing, optimising and releasing the value of a financial advisory business’, draws on exclusive research into recent M&A activity in the IFA sector and offers value-enhancing strategies to ensure businesses are best positioned to survive the current market conditions, and prevent IFAs from losing out as the expected ‘stampede to exit’ takes its toll on the valuations accorded in the coming years.  The report is meeting the demands of owner-IFAs who are increasingly taking steps to find pre-emptive ways of safeguarding the value of their business to ensure they realise the optimum price when it comes to the point of sale, be that in the near or longer term.

The report details the nuts and bolts of the tangible and intangible, qualitative and quantitative valuation metrics that are often considered by acquirers.  It also offers research-led practical solutions to help IFAs realise the core value enhancers that acquirers are actively seeking, such as: repeatable income, clear expertise, and a loyal, well-serviced client base. It also highlights factors which can erode a firm’s value, or throw a transaction off-course once a sale has been agreed.  Advice on the various exit options available, the logistics of finding a buyer, negotiation techniques, and managing and timing an exit are also discussed at length.

Jasper Berens, Head of UK Retail, at J.P. Morgan Asset Management commented:  “Planning an exit or simply trying to make a business work smarter is not something that can happen overnight and should be a fundamental activity throughout the period of ownership of an advisory business.  It is clear from the considerable response to the launch of our latest report, that IFAs are hearing that message loud and clear, and are ready to take action to enhance the attributes of their firms, making them more attractive to future buyers and also better able to withstand current commercial, economic and regulatory headwinds.  With the latest stage of the RDR and the forthcoming introduction of the J06 qualification across the industry IFAs are weighing up all their options and this report provides the fundamentals to equip them to survive the storm or build a successful business for exit”.

J.P. Morgan Asset Management’s report, ‘Reaping Rewards: assessing, optimising and releasing the value of a financial advisory business’, is still available to download at:

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* 10,500 IFA firms currently registered in the UK.

For further information please contact:
J.P. Morgan Asset Management
Ben Larter
Tel: 020 7742 2112

Lansons Communications     
Inez de Koning / Caroline Macleod-Smith / Lizzi Malley     
Telephone: 44 (0)20 7294 3623 / 44 (0)20 7566 9702 / 44 (0)20 7566 9717    
Email: / /

Notes to Editors
J.P. Morgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.1 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at March 31th 2009) and offices in 40 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.

J.P. Morgan Asset Management is a trading name of J.P. Morgan Asset Management Marketing Limited which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority.  Registered in England No. 288553.  Registered office: 125 London Wall, London EC2Y 5AJ.

Any past performance referred to in this material is not a guide to future performance and the value of investments, and any income from them, can fall as well as rise.  Any tax concessions referred to are not guaranteed and their value will depend on the individual circumstances of investors.  Stock market linked investments carry a number of inherent risks.  These risks will increase where fluctuations in exchange rates impact on the value of any underlying investments or where the investment is exposed to smaller companies or emerging markets.  Investments in fixed income securities that are not rated as investment grade represent a greater risk to an investor’s capital.

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