it’s a sellers market at the moment

by | Mar 2, 2021 | For Clients

Thankfully, the lighter evenings are on the way, I have noticed looking out of the office window that the afternoons are gradually getting longer and like many I’m looking forward to hopefully being able to resume more normal activities in the coming months.

Imagine being able to go on holiday again and spend some quality time with friends and family?

We have had a strange start to the year, but then again perhaps nothing seems strange anymore.

The current market for IFA practices is easy for me to summarise- lots of hungry buyers chasing too few willing sellers.  These buyers have funds in place and are ready to go.

Yet while there is clearly no mass exodus, this sellers’ market will not last for ever.

For IFAs, we have two separate strands of advice.

First, for those IFAs not yet ready to sell. Do not 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 is 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. We can advise you on this.

Second, for those IFAs planning a sale this year or even next, you should prepare, then negotiate. Getting the right deal takes time and there is nothing wrong in being prepared in case you do want to move quickly- Again this is something we can help with.

There are a number of 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 and contrast.  Getting the right buyer is of paramount importance and we have years of experience bearing testament to this.

As the leading independent consultants to the financial services profession, we are well placed to help you explore a wide range of options and to prepare for a sale.

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