Future-Proofing Your Business: Adapt, Grow, or Exit?
At Harrison Spence, we are often the first point of contact for IFAs looking to gauge the state of the market. Whether you’re simply curious about your business’s value or actively considering a sale, knowing what makes your firm sellable at the best possible price is crucial. If you’d like an initial valuation or advice, feel free to get in touch—our first meeting is always at our expense.
The Clock is Ticking on Business Asset Disposal Relief
As many are aware, we are fast approaching significant changes to Business Asset Disposal Relief (BADR). The current 10% rate on the first £1M is set to rise to 14% for disposals made on or after 6 April 2025, with a further increase to 18% from 6 April 2026.
With these deadlines in sight, we anticipate a surge in IFAs seeking an exit, particularly after the current end of tax year season. The financial advice industry is ageing, and many business owners are contemplating retirement, new ventures, or transitioning to a different way of working. If you are considering selling, it is essential to start preparing as early as possible to maximise value and avoid unnecessary tax burdens.
Although we are still a year away from the next tax hike, taking the initial steps now is vital. If this resonates with you, get in touch, and we’ll send you a free copy of our guide to selling your business. After reading it, feel free to reach out—we are more than happy to answer any questions you have.
Growth Strategies: Build Value for the Future
If you are not planning to sell immediately, investing in business growth is key to securing a higher valuation when the time comes. Our consultancy team specialises in helping IFAs develop and implement strategic growth plans to retain existing clients, attract new ones, and enhance overall business value.
Can this be achieved within a year? Absolutely—with the right focus and a solid strategy, significant progress is possible. A proactive approach now will ensure you remain competitive and well-positioned for the future.
Adapting to a Changing Market: The Rise of the Digital Advisor
While the industry faces a shortage of young advisors, those entering the market are adopting new methods to win clients—and, in some cases, attract them away from established IFAs. Social media has become a powerful tool in their arsenal, allowing them to engage with clients in ways that traditional marketing channels cannot.
Advisors leveraging platforms such as LinkedIn, Facebook, Instagram, and X (formerly Twitter) are positioning themselves as thought leaders. By sharing valuable content—ranging from blog posts and infographics to educational videos—they are not only building their brands but also forming relationships with the next generation of investors.
This shift is particularly relevant given the impending wealth transfer from older generations to their younger heirs. Many of these future investors seek advisors who align with their communication preferences and digital habits. It cannot be assumed that they will automatically turn to the previous adviser for advice. IFAs who fail to engage with this trend risk losing large amounts of their portfolios or being left behind.
The Choice: Adapt or Exit
The financial advisory landscape is evolving, and IFAs must decide how they wish to navigate this change. Whether your goal is to prepare for sale or strengthen your firm for the long term, taking action now is essential.
At Harrison Spence, we are here to support you—whether that means helping you plan for an exit, grow your business, or adapt to the new digital landscape. If you would like to explore your options, let’s have a conversation. And remember, any first meeting is always at our expense.