IFA network ValidPath has facilitated the purchase of Ledbury-based firm Winnell Douglas through its succession solution tool.
Launched in May 2022, the tool was developed as an alternative to IFA consolidators or “do-it-yourself” options.
The solution aims to help with the sale and purchase of IFA firms, and to enable the selling advisers to access liquidity and retire on their terms.
By using the tool, the seller has been able to transition regulatory responsibilities as a directly authorised firm, access liquidity through the business sale and retire from the industry.
Winnell Douglas’s management and client servicing has been transferred to IFA’s Tori Passmore, David Parry and Damien Hopkins, who have an IFA firm within the ValidPath network, taking over as company directors, financial advisers and shareholders.
According to ValidPath, facilitating the deal through the solution has meant the independence of the firm has been preserved with a guarantee that clients will continue to receive independent financial advice.
Angus MacNee, chief executive of ValidPath, said: “We want to support vendors to retire and provide the next generation of financial advisers with the opportunity to expand their business while preserving independence for clients.
“The consolidator model often requires clients and assets to move platforms and providers as the basis for underwriting a deal. This is not great for clients and many vendors feel uncomfortable that selling up to facilitate their retirement requires them selling out their values and independence.
“The ValidPath succession solution was built as the alternative to consolidation, and it is entirely independent and platform and provider agnostic.
"We facilitate the entire process from planning to transaction and then financing and all ongoing deal administration so the vendor can transition responsibilities, get their payday and retire, and the successor managers can take over management as directors and shareholders.”
Passmore added: “We set up our IFA business just over three years ago with support from ValidPath having come from a wealth management background with big banks. We are passionate about independence and pride ourselves on the design, implementation and ongoing management of holistic financial life plans.
“Our business is growing organically, however, the opportunity to utilise the ValidPath succession solution to accelerate the growth of our overall business via the Winnell Douglas acquisition was unique.
"Winnell Douglas has been operating in Herefordshire for over 20 years, Ledbury is a fantastic community, and we will be holding a local event in the coming months for clients, partners and local businesses where community and supporting clients remains the focus.”
alina.khan@ft.com
