Financial Advisor & IFA Valuation
Discover what your IFA practice could be worth today
Typical Valuation for a Financial Advisor / IFA Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 5.0-8.0× |
| EBITDA Margin | 30-50% |
Market Overview
IFA businesses typically sell for 3.0-4.5× recurring turnover (or 5.0-8.0× EBITDA) in the UK market. Unlike most industries, IFAs are often valued on turnover multiples due to predictable revenue streams. The range reflects trail commission percentage (ongoing fees from existing clients), client retention, compliance quality, and succession readiness. Key differentiators include recurring revenue (70%+ ideal), client demographics (age, wealth), FCA compliance record, adviser qualifications (Chartered, CFP), and systems/technology. Consolidators (Succession, Muckle, Aviva, Quilter) actively acquire established practices. Client banks under £20m typically appeal to individual buyers; £20-100m attract consolidators.
How to Value a Financial Advisor / IFA Business
The standard methodology for valuing a financial advisor / ifa business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For financial advisor / ifa businesses, that multiple typically ranges from 5.0-8.0×.
Use our free calculator to get an instant valuation estimate based on your actual revenue and profit figures.
Get Your Free Financial Advisor / IFA Valuation
Company Valuation Calculator provides free, instant business valuations for UK SME owners. If your business generates between £250k and £1M EBITDA, we may be interested in acquiring it directly.