Model 1

Sell and Leave - Selling business is valued at between 3 and 4 times the recurring income revenue. This is usually paid over a 2 or 3 year earn out with up to 40% paid on completion and the remainder paid over the following 2 or 3 years. The IFA/Owner can sell and leave the business straight away.

Model 2

Sell and Stay - similar to the above but the IFA/Owner can stay on in an employed or self employed position with the acquiring company.

Model 3 

Plan towards Retirement - Sell 75% of the business straight away for 3.5 times renewal income and then work with acquirer to increase the remaining 25% over up to 5 years to then sell this part to them again. This option allows the seller to retain their identity going forward.

Model 4

Deferred Buyout - Continue as you are for up to 2/3 years with the focus to then sell to the acquirer for 6 times the average of the renewals and the net profit. In that time you are left to run the business as usual but the acquirer takes away the back office along with its costs.