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ValidPath Launches The ValidPath Succession Solution For Independent Financial Advisers

Ambitious business man climbing stairs to meet incoming challenge and business opportunity. The high stair represents the concept of career path success, future planning and business competitions.

ValidPath has today announced the launch of its “Succession Solution” for independent financial advisers. 

Developed as an alternative to IFA consolidators or “do-it-yourself” options, ValidPath has created a complete solution for selling IFAs to access liquidity and retire on their terms while empowering the next generation of ‘successor manager’ IFAs to become business owners, all while preserving independence and supporting clients’ best interests.

The industry backdrop is clear, with a private equity fuelled acquisition frenzy seeking to consolidate the market on one side and a complete lack of viable options on the other. For IFAs that value independence, it is therefore evident that a new approach is needed to support those seeking to retire in the years ahead and the next generation to become business owners.

Making this happen in-house can be difficult, disruptive and time consuming for the firm, brokers may be unaligned and financing unavailable or prohibitive such as requiring personal guarantees.  Alternatively, engaging with an IFA consolidator may be unappealing, especially if platform and product consolidation is core to their business model and the needs of clients and the aspirations of staff is not always a priority.

It is clear that there needs to be an alternative, and ValidPath has launched the ValidPath Succession Solution to be just that.

The ValidPath Succession Solution facilitates the sale and purchase of IFA firms to enable the selling IFAs to access liquidity and retire on their terms while empowering the next generation of ‘successor managers’ to become business owners.

The solution supports both single and multi-adviser firms, as well as Appointed Representative or Directly Authorised firms, with ValidPath managing the entire process from feasibility to due diligence, valuation determination to commercial terms, transaction structure to completion documentation, and the transition plan with ‘successor managers’.  All finance is provided, no equity contribution or personal guarantee is required, and all ongoing deal administration is managed.

Angus MacNee, CEO of ValidPath commented: “ValidPath has been supporting IFAs for over 20 years, and it became apparent that a new approach to exit and succession was required to support the objectives and aspirations of IFAs that resonate with the core values of independence and independent financial advice. 

“As an industry we need to support the next generation, and when you look at the alternatives in the marketplace, they are almost entirely vendor-focused and don’t empower the ‘successor managers’ to create value for themselves or offer piecemeal support that is transactionally focused and often self-serving. 

“We have packaged a complete ‘turnkey’ solution that is entirely independent, fully funded and where we manage the entire process. That is why I am so pleased to bring the ValidPath Succession Solution to market after 18 months development for ValidPath and the IFA community. After all independence is everything, and we believe that independent financial advice is as important today, as it will be tomorrow.”

Phil Bray, Founder & Director of The Yardstick Agency, said: “One of the most difficult tasks you can undertake as a business owner is to navigate how to exit the advice business you have built up.  As an IFA, you get to know your clients, their families, their hopes, their dreams and often have to help them through difficult life stages such as bereavements. 

“So, having an alternative to IFA consolidators, which enables the business to continue to be run with the same people, culture and ethos is really important.  That is why the work that ValidPath has done to create an alternative option is such a great development for the sector.”

Ray Adams, Chartered Financial Planner and founder of CashCalc commented: “A turnkey solution that supports independent financial advisers to maintain independence and implement a succession plan will be a gamechanger for the sector and a positive development for the industry.”

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