Following a change at the top earlier this year, consolidator Perspective Financial Group has introduced new terms of acquisition for advisers.
Perspective will pay member firms six times the firm’s pre-tax profit at the point when the firm itself is sold. It will pay three times profits upfront, with further payments dependent on adviser performance over two years.
After finance director Phil Carr and group operations director Peter Craddock stepped down in January, non-executive director Anthony Morrow and managing director Damian Keeling left in April.
Founder and chairman Paul Hogarth moved to a more executive role in June as part of a restructure, with 20 advisers and private equity backer Mosaic Capital putting a combined £6m into the business.
This time last year the firm had to scrap plans for a £28m float on the Alternative Investment Market.
David Hesketh, Perspective’s corporate development director, told FTAdviser said: “There was obviously a reshuffle of the board and we’re now launching this associate membership scheme which represents the changes the business has undertaken over the last few months.”
He explained that IFAs will now pay a fee of 10 per cent of their revenue for access to all the group’s systems and procedures, which should uplift profitability.
“We can allow firms joining the business to focus on the part they enjoy and are profitable, while we deal with the other functions and enjoy an increased value on exit.
“We’ve got a mature business compared to some of the consolidators out there, we’ve been here since 2008 and bought 31 businesses over that period, we’ve built the infrastructure and now have the opportunity for member firms to join us and benefit from that.”
Mr Hesketh did say that an overall exit strategy fro the group was in the works, but would not be drawn on its timescale.
