ValidPath, the network for independent financial advisers, has today launched its Client Buyout (CBO) Programme, a comprehensive succession and acquisition solution designed to help advisers exit and retire.
Developed as a ‘turn-key’ and independent solution to help retiring advisers to achieve a capital event and younger advisers to grow via client-book acquisition, this innovative new programme comes at an important time for the advice sector, as Angus MacNee, CEO of ValidPath explains:
“The average adviser is now nearly 60 years old, and with more than half planning to retire within the next five years, thousands of businesses and client books will need to be transferred or acquired.
“For IFAs that value independence, consolidators can be off-putting, and DIY routes too complex. The ValidPath CBO Programme offers a simpler, independent alternative – supporting retiring advisers to execute their succession plans while empowering the next generation to grow via client-book acquisition.”
A soft launch has generated strong early interest; more than 50 firms have already registered, and the programme has the capacity to support hundreds of IFAs to exit over the next 24 months.
How it Works
ValidPath supports the CBO Programme by fostering and supporting a marketplace that connects willing buyers and sellers. The ValidPath team manages the transaction process, from feasibility and matchmaking to valuation, due diligence, financing, and ongoing deal support. Buyers are ValidPath Members, while sellers can be any adviser – whether a Registered Individual, Appointed Representative, or Directly Authorised.
Buyers gain the opportunity to acquire and service a seller’s client base, while retaining 100% ownership of their business. They commit to a five-year plan that underpins the acquisition financing and can access a marketplace of vetted sellers or prospect their own opportunities. Support includes financing, templated transaction documents, and end-to-end guidance to streamline the process.
Sellers can achieve a capital event with an initial payment and deferred payments over 24 months. After supporting the client transition, they can retire, safe in the knowledge that their clients will continue to receive independent financial advice and be supported by a firm and adviser of their choosing within the ValidPath network.
The programme is being managed by Laura Handy, who has significant experience in supporting practice and client buyouts, who joined ValidPath as Succession Development Manager to spearhead the CBO Programme.
Speaking about the launch, Laura says the goal is to make succession planning more accessible, and ultimately more successful, for both advisers and their clients.
“We know many advisers have the drive and capability to grow their business and support more clients, but lack the M&A experience or support to move forward with acquisitions,” she said.
“We bridge that gap by helping sellers to value their business and execute their succession plans with buyers that are supported throughout the transaction process and with a financing package that makes acquisition-based growth achievable.
“One IFA described our CBO programme as the ‘eHarmony of IFA matchmaking’. That’s positive feedback, and I am excited about the introductions we can facilitate in the future and the positive impact that can have for our industry.”
Key to delivering the ValidPath CBO Programme at scale is the use of Rimbal technology, that automates and manages the information gathering, financial modelling, due diligence and transaction process of participating advisers. Rimbal technology provides the ValidPath team with capacity to manage hundreds of transactions simultaneously.
Angus MacNee added: “We want to help hundreds of advisers to achieve their exit and retirement objectives. We want to help hundreds of advisers looking to grow their businesses. The ValidPath CBO Programme was developed to support these objectives within an independent framework, and to ensure that clients can continue to receive independent financial advice into the future.
“We have assembled a fantastic team that has significant experience in M&A, buyouts, financing and making acquisitions successful, and we have built the technology to provide scalability and a good user experience for participants.
“I am excited about the opportunity that the ValidPath CBO Programme has to support the broader community of independent financial advisers, and across the full lifecycle of those starting, growing or exiting their business.”
IFA testimonials
“As an Independent Financial Planner, my passion has always been about supporting more people on their financial journey. Growing my business through client book acquisitions enables me to extend that support to more individuals and families, while remaining true to my values of independence and personalised service. The ValidPath Client Buyout Programme gives me the tools and confidence to do just that and focus on what really matters: looking after clients.” — David Ruler, David Ruler Financial Planning
“Through the ValidPath Client Buyout Programme I was introduced to a seller whose values align with mine; it’s rare to meet someone so likeminded! Our shared commitment to independent advice made the idea of a client buyout feel like a natural progression, and I’m pleased to be able to support these new clients with continuity of service and continued access to independent financial advice.” — Angus Bunten, The Aisla Partnership
