Timing is Everything
I was delighted to see that many of you responded to my last email by downloading our free guide to selling an IFA practice. I’m particularly pleased when communication sparks action, such as receiving calls from individuals with insightful questions.One section in our guide, concerning timing, has consistently raised questions ever since it was first published a few years ago:
“The decision to sell any business must be a matter of personal choice but there are some key times when to sell and when not to sell. It is generally accepted that the worst time to sell a practice, is when it is experiencing a downturn in business, any potential purchaser is going to focus on this as a possible way to reduce the value of their offer to you.”
I’m often asked, “Is now a good time to sell?”
Ultimately, only you, as the business owner, truly know the current state of your practice.
That said, we always recommend a pre-sale “MOT,” which we are more than happy to assist with. This assessment helps to establish your practice’s current standing and identify any areas needing attention before opening your doors to potential buyers. Our guide also explains:
“You only have one chance to make a first impression with a buyer, so it’s crucial to get it right the first time.”
As active participants in the market, we can confirm that acquisition activity is currently high. If your business is in good shape, that leaves us with the most important factor to consider: you and your emotional readiness to sell.
Running an IFA practice for many years means you will have likely built strong relationships with your clients, perhaps even becoming social friends with some or many of them.
These clients (and friends) rely on your advice, which is why deciding to sell can feel so daunting. Loyalty works both ways. One day you’re in charge, and the next, someone else with a different approach may take over—a thought that often makes business owners pause.
This reluctance to step away can lead to prolonged indecision, sometimes to the point where a sale becomes inevitable for reasons outside of your control. It’s never ideal to sell a business when you feel forced into the decision.
As a former IFA myself, I understand how difficult it is to relinquish control of what has essentially been your life’s work. This is why the decision to sell should not be taken lightly, and I always recommend discussing your options with someone impartial.
In the current climate, there are excellent deals available—not just in terms of the purchase price but also in the flexibility of deal structures, which can be tailored to suit your personal requirements. At Harrison Spence, we take pride in listening carefully to IFAs to understand their reasons for wanting to sell or make significant changes. Believe it or not, we sometimes advise that selling isn’t the best option, depending on your unique circumstances.
P.S. You will notice I have not mentioned the upcoming Budget and possible changes that this might bring as I am a believer of acting on facts not conjecture and speculation. Once the Budget has been delivered than we will comment on the changes that this will bring.