Increased Market Activity

The past few weeks have seen a significant uptick in activity, as many financial advisers return from their summer breaks. We’ve had a positive response to our recent communication regarding the timelines for selling a business.In that email, we also highlighted our pre-sale ‘MOT’ service, which is an invaluable tool for those considering bringing their business to market in the coming years.

One of the questions that arose from this was: “If we opt for this service, are we obligated to use Harrison Spence to sell our business?” The answer is simple: No. You are free to choose whichever firm you feel is best suited to your needs. However, we would, of course, be delighted to support you in achieving a life-changing capital event that reflects the hard work you’ve invested over the years.

For those IFAs looking to exit the industry within the next 12 months, I’d like to draw your attention to the following important points:

• Current acquisition activity is high: It’s important not to jump at the first offer, especially if it comes unsolicited. While it may be flattering to receive a direct approach, it’s essential to remember that the initial offer may not always be the best one. I strongly recommend seeking a second opinion, even if it’s not from us. Ensuring you explore all options will likely lead to a more favourable outcome.

• Don’t undervalue your practice: While some IFAs are well aware of the value of their business, others may feel their practice might not attract strong interest. If you find yourself in the latter group, rest assured there are likely to be many potential acquirers who would be keen to engage with you—and many may be able to offer better terms and conditions that align with your personal plans. Given the current market conditions, now is an opportune time to negotiate a deal that suits you.
• The process requires careful management: Selling an IFA practice is a complex and often demanding process. Having worked in this space for over 14 years, I have frequently been appointed mid-transaction to assist sellers in navigating issues that arise both during the sale and in the post-sale earn-out period. This highlights the importance of having the right support from the outset.

For those considering selling, especially those thinking of going it alone, we have previously published a concise guide to selling an IFA practice, which provides an excellent starting point. This guide is available for download on our website at the link below:

Guide to Selling Your IFA Practice

As independent consultants to the financial services industry, we are well-positioned to assist you in exploring a range of options, whether you’re looking to sell your business or develop it further.