Buying an IFA practice?

An IFA practice is valued on its recurring income — the ongoing adviser charges and trail commission generated by an established client bank under management. The assets under advice are the business. A well-run practice with a diversified client base, low concentration risk, and a strong proportion of income from ongoing servicing agreements rather than one-off transactional fees is one of the most consistently fundable professional practice acquisitions available.

What lenders look at

Recurring income quality is the foundation. Lenders will examine the split between ongoing servicing income and transactional fees — a practice generating seventy percent or more of its income from recurring adviser charges and trail commission is a fundamentally more fundable proposition than one dependent on new business generation. The assets under advice figure is important but secondary — what matters to a lender is the income those assets generate and how reliably that income recurs.

Client concentration and retention history are assessed carefully. A practice with a well-spread client base — no single client or household representing more than five percent of recurring income — and a strong retention history is the most fundable profile. Lenders will want to see evidence of how the client base has responded to previous adviser changes, whether through retirement, departure, or merger — practices with low historical attrition through transitions are significantly more attractive propositions.

FCA authorisation and regulatory standing are central to the underwriting. The incoming principal's FCA authorisation status, their regulatory history, and the firm's FCA permissions are all reviewed before any funding offer is issued. Where the buyer intends to operate under appointed representative status rather than as a directly authorised firm, the network or principal firm relationship and its terms will also be assessed. Lenders will not advance against a practice the buyer is not yet authorised to advise from.

The transition plan and client communication strategy are reviewed as part of the overall application. Client loyalty in financial planning is personal — lenders will want to understand how the incoming adviser intends to introduce themselves to the client bank, what the outgoing adviser's role will be during the handover period, and what retention measures are in place. A structured transition with an earn-out arrangement and a clearly documented client communication plan materially strengthens the application.

How we help

We are acquisition finance and loans brokers, not lenders. We package your application, present it to the funders with genuine financial services practice appetite, and manage the process from first conversation through to completion.

We also arrange government-backed facilities for IFA practice acquisitions — helping buyers access up to £2 million toward their purchase where the criteria are met.

Every practice acquisition is different. Tell us about the practice. We will take it from there.