Summer Thinking

I decided a few months ago not to take time off this August, anticipating that for several reasons we would be busy, and I was right, it has been.

Usually though, summer is a time like at the top of the year, when things slow down. Thinking time we call it, a time of relaxation and introspection which often prompts professionals to re-evaluate their goals, ambitions, and the path they have chosen. This is a great time to make plans, having been an IFA, I know that the hustle and bustle of the rest of the year can make it challenging to step back and evaluate the bigger picture.

It seems that quite a few IFAs do have an eye on the future. An article published a few months ago in FT advisor ,reported that three quarters of IFAs plan to retire in the next ten years.

This is worrying, as I think most of us would agree that there are not enough new advisors joining the industry, even if you accept that Artificial Intelligence will be doing more of the heavy lifting work in the future, qualified IFAs will still be required to do the vetting of any decisions being made.

So, why have we been busy? We have been speaking to IFAs, most who whilst not thinking of retiring just yet, are taking the sensible decision to examine their options. We have had many IFAs asking similar questions, and it was one of the reasons I decided to relaunch our guide to selling an IFA practice as reported by International Advisor Magazine. The guide is available on our website, or just drop me a line.

There are in truth many things to consider when selling your business and some of the topics we have been discussing include:

How much is my business worth. – This is a perennial favourite. Determining the value of the practice is a complex process that involves assessing client assets, revenue streams, and the potential for future growth. Knowing this in advance of an offer, especially one out of the blue is essential.

There is also; Successor Selection, something I consider to be 98% of any deal.  Identifying a qualified successor who aligns with the advisor’s values and service philosophy is crucial. The successor should ensure a seamless transition for both clients and staff. This is a field we specialise in and have a reputation for achieving.

We’ve also discussed with IFAs, the impact a sale will have on their own personal financial situation, retirement plans, future income streams, and the  topic of Legacy and Reputation .

Legacy and Reputation is important to so many IFAs and is really tied up with finding the right successor to carry on what is often a lifetimes work, a well-executed sale can enhance an IFAs reputation and solidify their contributions to the industry.

There are still a reasonable number of companies that would be interested in buying any IFA practice, but as I have reported before, we have noticed in the last 12 months that the style of deal we are arranging is changing from the traditional sell and retire to a more bespoke deal based on the owners or owners’ individual needs.  Please do not feel you must take the first deal that comes along, there will be others and there may be better terms.

With careful consideration and thoughtful planning, financial advisors can embark on a new journey, leaving behind a legacy that is both professionally fulfilling and financially rewarding.

If you want to sell your business or want to put it on a great footing to be sold at some point in the future, please do give us a call or drop us a line. We will be delighted to speak to you in strictest confidence, as per usual any first meeting is at our expense.