IFA Selling Advice

by | Dec 16, 2019 | For Clients

The current market for IFA practices is easy to summarise; there are lots of potential buyers looking for businesses of all shapes and sizes chasing too few willing sellers.

Yet while there’s clearly no mass exodus, this sellers’ market won’t last for ever and we do know of a number of IFAs, not quite ready to sell, but who are certainly keeping a close eye on economic events.

For IFAs, we have two separate strands of advice:

First, for those IFAs not yet ready to sell. Don’t change your mind based solely on these market conditions. If you have a long-term plan, then you should stick to it.

That said, it’s prudent to consider diversifying now, ‘banking’ some of the value of your business today while the balance of supply and demand is in your favour. This could involve a partial sale or selling on part of your client book above or below a fixed threshold.

Second, for those IFAs planning a sale this year, you should prepare, then negotiate.

There are several pre-sale techniques you can use to maximise the value of your business. Once that process has been completed, you should speak to as many serious buyers as possible, if only to compare.

As independent consultants to the financial services industry, we’re well placed to help you explore a wide range of options and to prepare for sale. We have conducted many pre-sale “MOTs” to help owners place their business on a good footing for a sale at a future date.

To discuss your situation in confidence, please contact me directly . There is no charge for an initial meeting.