Financial advice consolidator Fairstone has launched an individual buy-out programme to help advisers transition into retirement.
As part of the programme, advisers selling to Fairstone will receive an initial capital sum, as well as a proportion of ongoing fee revenue for an agreed period, typically 15 years.
Fairstone will also help with all succession planning, including candidate selection, legal, technical and regulatory support.
Lee Hartley, chief executive of Fairstone Group, said: "Our proposition enables quality advisers to realise the value of the business they have built, as well as securing a lucrative long-term income post-sale.
"Our research suggests that the best time to sell a business is much earlier than many advisers believe, and we are now able to help these individuals through that process and beyond.
"Fairstone's new proposition addresses an often-overlooked segment of the market, providing individual advisers with an attractive retirement solution where their clients costs will not increase and client choice will not reduce.
"We look forward to welcoming those individuals who have the vision to grow their business with Fairstone and secure an exit in the knowledge that their clients are in the best possible hands."
Last year Mr Hartley told FTAdviser he was looking into offering a retirement income to advisers who want to sell their business before stepping aside.
Eight deals have already been reached with a number of advisers.
Paul Clarke, a Devon-based adviser, said: "Joining Fairstone's offering for individual IFAs provides me with the certainty of a structured exit strategy, with additional financial security for my wife and the peace of mind that my clients will continue to benefit from first class advice."
Until now Fairstone has typically only bought firms through its downstream buy-out model, which sees the company take a stake in a firm before integrating it and buying it.
Since 2011 Fairstone has integrated 36 firms through this model, reaching £5bn of funds under management with 410 advisers and staff and more than 41,000 clients.
damian.fantato@ft.com
