A straightforward sell-off of a company is becoming a less-favoured exit strategy for principled principals, according to consultant Malcolm Murray, who writes that, instead, owners are developing what he calls legacy businesses...
When the first wrap service was launched in the UK in 2000, it caused a shift in the remuneration structure of many financial advisers. Over the preceding decade or more, the introduction of trail commission had meant that few advisers were by then without any form of recurring income. But the wrap service introduced one seismic change: the recurring income would henceforth be paid to the adviser by the client and not the product. At the same time, there was a growing interest in valuing the business on a multiple of that recurring income. Would it be two and a half times, three ti...
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