What’s changed in a year
What’s changed in a year.
Recently, I read in the “Financial Advisor” that the value of IFA firms had grown in the previous 12 months at the fastest rate in 6 years, with the company value increasing by just over 10%
I remember 12 months ago sending an e-mail stating that potential vendors should know that some of the best prices were being achieved at that time due to the demand for businesses both on immediate sale and future deferred sales, this is still very much the case and there are some great deals being done at the moment. IFA businesses are in demand.
Of course having been an IFA myself for many years I know that the IFA role is a brilliant one – thoroughly enjoyable, amazingly rewarding and always varied, as such, the key drivers for selling an IFA business must be very significant indeed to prise business owners away from their vocation.
Among them might be:
• Ill health
• Business valuations presently being the best they have been in many years
• A desire to reduce business risk by taking money off the table
• The growing regulatory burden
• Seeing less profit for more hours
• Having to do a disproportionate amount of non-client facing work
• The tax benefits available through Entrepreneurs Relief
• The fact that the current market seems to favour business vendors
• Potential political changes
In that same e-mail last year, I reported that in my 10-year consultancy experience, the lease end date was still the main driver for most businesses to want a sale, this still holds true and it still makes me smile.
Whatever your reason for considering a sale (even if it’s not imminent) we’d be delighted to hear from you.
I’m always happy to outline our unique service, answer any questions you may have and discuss the reason why planning for a sale now even if a few years off, pays dividends when it comes achieving the best price.
Harrison Spence are the leading consultancy in the Retail Financial Services sector, we can assist in helping you achieve your desired outcome.