Adviser network ValidPath has today launched what's been called an 'e-Harmony-style' match-making Client Buyout Programme (CBO) to connect buyers of IFA firms in its network with advisers nationally looking to exit the profession and retire.

The Cardiff-based company says that over 50 firms are already registered for the Client Buyout Programme (CBO) which has space to support hundreds of IFAs to exit over the next 24 months, according to the firm.

The programme is a 'turn-key' solution to help retiring advisers to achieve a ‘capital event’ and to give younger advisers a chance to grow via client-book acquisition.

The CBO matches buyers of advice firms with sellers and handles much of the transition process, ValidPath says.

ValidPath says that with the average age of an adviser at nearly 60 there is a need for a widespread exit strategy for retiring advisers and a service to match sellers with appropriate buyers.

Angus MacNee, CEO of ValidPath, said: “The average adviser is now nearly 60 years old, and with more than half planning to retire within the next five years, thousands of businesses and client books will need to be transferred or acquired.

“For IFAs that value independence, consolidators can be off-putting, and DIY routes too complex. The ValidPath CBO Programme offers a simpler, independent alternative - supporting retiring advisers to execute their succession plans while empowering the next generation to grow via client-book acquisition.”

The firm has already soft launched the programme and says more than 50 firms have already registered.

ValidPath says its CBO Programme fosters and supports a marketplace by connecting willing buyers and sellers. The ValidPath team manages the transaction process from feasibility and matchmaking to valuation, due diligence, financing and ongoing deal support.

Buyers are ValidPath Members, while sellers can be any adviser - a Registered Individual, Appointed Representative, or Directly Authorised.

Buyers gain the opportunity to acquire and service a seller’s client base, while retaining 100% ownership of their business. They commit to a five-year plan that underpins the acquisition financing and can access a marketplace of vetted sellers or prospect their own opportunities. Support includes financing, templated transaction documents and guidance to streamline the process.

Sellers can achieve a capital event with an initial payment and deferred payments over 24 months. After supporting the client transition, they can retire having handed on their client bank to a firm they have worked with.

The programme is being managed by Laura Handy, who has experience supporting practice and client buyouts. She joined ValidPath as succession development manager to spearhead the CBO Programme.

She said: “We know many advisers have the drive and capability to grow their business and support more clients, but lack the M&A experience or support to move forward with acquisitions. We bridge that gap by helping sellers to value their business and execute their succession plans with buyers that are supported throughout the transaction process and with a financing package that makes acquisition-based growth achievable.

“One IFA described our CBO programme as the ‘eHarmony of IFA matchmaking.’  That’s positive feedback, and I am excited about the introductions we can facilitate in the future and the positive impact that can have for our industry.”