Step 1 – Initial Informal Discussion
We’ll discuss your initial thoughts on the best future for your firm. Maybe you are approaching retirement, seeking a career change or launching a new business venture, or are concerned about the ever increasing regulatory requirements. Whatever your reasons, we’re happy to talk through your current thinking. This discussion will, of course, be entirely confidential and without any commitment on either side.
Step 2 – Informal Meeting with Principals/Advisers
If and when you wish to take matters to the next stage, we’ll offer you the opportunity to meet informally and in confidence with a relevant Office Principal and other members of the Adviser team. This will enable you to get a feel for whether there is a good mutual ‘fit’ for your client base and how we work, and/or how you and your team (if relevant) would fit into Perspective’s culture.
We’ll start to talk in more detail about your preferred timescales and what you think you would like to do by way of exiting your firm or becoming part of us. We’ll prepare a document that summarises the current situation and any outstanding issues.
Step 3 – Financial Discussion
The next step is to discuss financial matters including a valuation of your business at this point. We will, of course, talk this through in detail with you, explaining the reasons for our valuation thoroughly and clearly.
Step 4 – Due Diligence
If you feel the valuation is fair, we will undertake due diligence on your business. If any challenges are uncovered at this stage, we will work closely with you to overcome them and put a plan in place to rectify them.
Step 5 – Legal Agreements
We will now prepare ‘Head of Terms’ which summarise the deal including the financial aspects. If these are acceptable to you, we would then instruct our lawyers to draw up the necessary legal documents to facilitate the transaction. You would need to instruct your own lawyers to act on your behalf.
Step 6 – Completion Meeting and Transition Sign Off
A completion meeting will be arranged, where we will exchange signatures and formalise the post-completion transition arrangements.
Step 7 – Introducing us to your clients, or joining Perspective
If you are retiring, you will usually spend three to four months full time formally introducing your clients to their new Perspective adviser who will take over the provision of on-going advice to them.
After that, we expect retiring Principals to play an ambassadorial role with existing clients for about 6 months and remain available for 2 years to assist with client retention.
Or, if you and your team are joining Perspective, you will meet your future colleagues and spend time learning about our processes and culture whilst continuing to provide an excellent service to your clients.
Step 8 – Final payments
Approximately four weeks after the end of the relevant accounting period, you will receive a statement showing the Recurring Income received in the first and second years, and be paid your first and second deferred payments respectively.