Is now a good time

Well, I don’t suppose there are too many complaints about having an extra Bank Holiday this month, it’s not every year we have a Coronation, and despite jokes from some of my IFA friends, no, I cannot remember the last one in 1953.

Unlike our incoming King, myself and all IFAs will at least have the opportunity to retire if we choose, imagine being in a role that would only end in the event of your death. When to retire is of course a matter of personal choice, unless of course it is forced upon you for other reasons.

So, with three Bank Holidays in a month, is part time work something you think you could get used to? Many IFAs have gone down this route by selling parts of their business, this has helped them to concentrate on more profitable areas of their business, or simply given them more time.

There are still some great deals available for IFAs wanting to sell all or part of their business. However, how long will these deals remain available?

According to an article in Money Marketing, the number of  independent financial advisory firms looking to sell or exit the market more than doubled in 2022, with twelve per cent of firms looking to sell or exit, this is compared with just 5% the previous year as  revealed by  “NextWealth’s”  Financial Advice Business Benchmark report .

NextWealth managing director Heather Hopkins pointed out to Money Marketing that it tends to be the smallest firms which are looking to sell or exit the market, not necessarily the ones which are being pursued by the consolidators, which tend to target midsize firms.

Is now a good time to sell your Business? Well, I believe now is a good time to at least consider your options. Hopkins went on to say that “It’s getting harder to find new clients, and the valuation a firm is going to be paid may start to decrease,”

Interest rates may not have peaked, and we may see further increases as early as this month, with firms less likely to be able to increase their valuations, acquirers’ appetite to buy firms may start to tail off.  Further to this, with more IFAs looking to exit, (which is probably only going to increase because of the new consumer duty rules), the deals may become harder to find, as acquirers already facing higher borrowing costs, will have a bigger choice of firms to acquire.

So, what to do?

Please talk to us, we can outline what is currently available either on a full or part sale. If you are an IFA that is looking to stay in the industry, at least for a few more years, our consultancy department can show you how to increase the valuation of your business, so when the day comes to sell, you will be well prepared, and also hopefully receive a valuation that meets your expectations.

To discuss your personal circumstance in the strictest of confidence, please do get in touch.