Alexander House has acquisition agreed

The team at Alexander House have just reached heads of terms to acquire a further £30m of funds under advice on excellent terms:

  • The one year annual recurring revenue from the assets (based on the post-RDR revenue model) are estimated to equal the total purchase price.
  • The team expect <2 year payback period on the purchase price, accounting for the time that it takes to novate clients over to Alexander House.
  • Based on a 12.5x multiple of recurring revenue being paid currently by acquirers of mid-size post-RDR compliant IFA firms, the return on the purchase price should exceed 10x.

No additional funding is needed to conclude this purchase, however there is still £500,000 to be subscribed in order to close the existing funding. Growth in revenue continues, with £110k revenues in August and excellent headline figures already for September.

With over £1m invested to date, Alexander House is one of the fastest growing IFA groups in the UK. The business addresses the key challenges facing financial advisers in today’s post-RDR market by utilising a proprietary cloud-based platform. Known as ‘Smart Alex’, the platform enables IFAs to significantly enhance their clients’ experiences through a multi-channel mix of media, enabling them to better advise and service their clients wherever and whenever they choose.

Backed by industry veterans; in under two years, the business has grown to 30 IFAs with over £50m under management and a run rate of £1m growing by 10% per month.

To find out more about Alexander House click here