An Emotional Decision
Imagine having run an IFA practice for a lengthy period, week in, week out, holidays here and there, chances are you’ll know a good deal of the clients personally, or at least be on first name terms.
These clients rely on your good advice, and this for some is what makes a decision to sell difficult. Customer loyalty, it works both ways. One day you’re at the helm, the next someone else is in charge, possibly someone who has a different method of client administration with which you don’t entirely agree. This dilemma can put off an IFA deciding to retire for a decent amount of time, sometimes to the point where alas a sale becomes inevitable for other reasons, it’s never good to sell a business when you have to.
In my experience, this dilemma is never more of an issue than in towns across the UK where an IFA practice is part of the local fabric.Ensuring a good cultural fit for your business when you decide to sell, is a speciality of Harrison Spence, as one IFA said to me a while ago. “When I retire, I want to be able to look my customers in the eye if I see them in the street.”
I’ve been an IFA myself and found it difficult to give up the running of what was essentially my life’s work, which is why any decision to sell should not be taken lightly, it’s always advisable to talk it through with someone independent.
However, continuing to run a business out of loyalty, doesn’t make sense, and this includes servicing clients that no longer fit in with your business strategy. The good news is there are many options available to IFAs thinking about making a change, either full retirement or perhaps continuing but on a different basis.
In the current climate, there are excellent deals available, and by this I am not just referring to the amount you will receive, but also in terms of the structure of the deal which can be designed to fit in with your personal requirements and agenda.
As I’m sure everyone is now aware, a key deadline in implementation of the new Consumer Duty rules is today, as the Financial Conduct Authority looks to ensure that firms are ready for its entry into force next year. If you need help with your plans, our offer a of a free consultancy meeting is still available, as is our “Consumer Duty Framework” which we can provide for a fixed price fee.
As independent consultants to the financial services industry, we are well placed to help you explore a wide range of options. If you wish to sell your business, or develop it further, we are here to help. To discuss your own set of circumstances in the strictest of confidence, please do get in touch.