Is Everyone Retiring?

by | Dec 1, 2023 | For Clients

 I  have read a number of surveys this year that suggest that large numbers of Financial Advisors are thinking of retiring. In May FT Advisor reported that three quarters (76 per cent) of IFAs plan to retire in the next decade, according to research by Opinium.

Are you one of the 76%? Are you thinking of selling your  buiness ?

I’m not entirely sure this number is accurate. As with most surveys, research, or polls, you have to take into consideration the number of IFAs that are actually being questioned. Perhaps the only way to obtain a true picture of intentions is if the FCA were to ask the question and demand a reply from all IFAs; this may then point to a developing storm within the industry. But would it really, in my experience the final “straw that breaks the Camel’s back” can come at any time and from many different sources.

Quite a few IFAs I speak to are “thinking” about retiring, we often have discussions which happen on and off over several years, sometimes even longer. We all know that “thinking” about something and actually doing something are two completely different things.
I know for a fact that with the recurring income coming in and the lack of a thought-out retirement plan, (and by that, I mean an actual plan to do something post-retirement) It is just too easy to keep going.

So, what if the surveys are correct and the number of IFAs wanting to retire in the coming years suddenly becomes a torrent? Quite simply, the then prevailing acquirers will have the pick of what to buy and on what terms.

Over the years, I’ve often noticed that when the decision to sell is finally made, it happens very quickly, with the IFA keen to get out as soon as possible. It’s one of the reasons I preach putting your house in order as soon as possible to give yourself every chance of a sale on (or as near as possible) to your terms, at the best possible price.
 
So, what to do?
Most IFAs only ever sell one business, and thus it is difficult to envisage the problems that may arise once the sales process is started. We’ve been involved in a large number of business sales, and have seen problems arise, pre- and post-sale. In fact, we are often asked for our help by IFAs that have decided to go it alone and run in to difficulties with some aspect of the transaction as it progresses or far worse once the deal is done. Our IFA background, and experience with selling financial service businesses enables us to both anticipate and resolve problems quickly.

As my grandmother always said to me, “You only have one chance to make a first impression” and with a business sale, it is so important to get everything right before you go to market. So, before you go to market, look at your business as if you were intending to buy it and were carrying out due diligence, understand the risks that an incoming purchaser might see. If there is anything, which does not look 100% sort it, or at least prepare for the questions, which you will receive around it.

Our consultancy department has helped many IFAs over the years, to achieve smooth sales and life changing capital events. We offer a service which we call a pre-sale MOT. This is available even if you choose not to appoint us to handle the sale of your business. It will help to identify any potential problems, and we can advise you how to fix them.
We would be delighted to hear from you to outline how we can help you prepare your business for a sale, even if that event is still a good number of years away.