Financial Services Business Valuation Expert Witness UK
Wealth management, IFA, and insurance brokerage businesses are valued on recurring assets under management, trail commission, or renewal income - typically as a percentage of AUM or a multiple of recurring revenue. Client retention, adviser age profile, and FCA change-of-control constraints materially affect value.
FCA authorisation cannot be freely transferred; buyers must obtain their own permissions or regulatory approval, creating uncertainty that experts must reflect compared with unregulated trading businesses.
Regulatory capital requirements and contingent liabilities from past advice may require balance sheet adjustments in NAV-style analyses.
| Sector / asset | Typical multiple / basis | Notes |
|---|---|---|
| IFA / wealth management | 2%–4% of AUM or 6×–12× recurring income | FCA change-of-control risk affects realisable value |
| Insurance broker (renewal income) | 1.5×–2.5× annual commission | Client retention and regulatory transfer key issues |
Indicative ranges from published transaction surveys and expert witness practice; case-specific evidence required for court.
Common questions
- How are wealth management businesses valued for litigation?
- Wealth management and IFA businesses are primarily valued on recurring assets under management (AUM) - typically as a percentage of AUM or a multiple of trail income. Expert witnesses assess client retention rates, the age profile of the adviser and client base, and any FCA regulatory constraints on the transfer of clients and permissions.
- What FCA issues affect financial services business valuations?
- FCA authorisation cannot be freely transferred - a buyer must obtain their own permissions or apply for change of control approval. This creates uncertainty that expert witnesses must address in valuation - reducing the marketable value compared to an unregulated business.
Next step
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