Why Smaller IFAs Are Exiting – and How Harrison Spence Can Help
If you’re a smaller IFA, you may have noticed a shift in the industry — and you’re not alone. An increasing number of smaller firms are choosing to leave the sector, as recent Financial Planning Today coverage has highlighted.
We know that many smaller Independent Financial Advisers (IFAs) are currently re-evaluating their futures. as merger and acquisition (M&A) activity continues to surge.
While larger consolidators are actively acquiring firms, smaller IFA owners are facing mounting challenges that are prompting them to consider whether now is the right time to step away.
There are two main drivers:
- Rising regulatory pressure – One of the key reasons for this trend is the increasing burden of regulation. For many smaller businesses, keeping up with compliance demands, Consumer Duty responsibilities, and shifting FCA expectations has become a significant strain on both time and resources. The pressure to invest in technology, ensure robust governance, and manage risk in an increasingly complex environment has pushed some to conclude that the cost of staying is outweighing the benefits.
- Taxation Changes – Another factor influencing exit decisions is the evolving landscape around Business Asset Disposal Relief (formerly Entrepreneurs’ Relief). In April 2025, changes were introduced that reduced the overall tax efficiency of selling a business. Further adjustments are scheduled for April 2026, which will result in even less favourable conditions for sellers. For some IFAs nearing retirement or contemplating succession planning, these upcoming changes are prompting urgent conversations about timing, and whether exiting sooner could be financially wiser.
Why we are different – Our unique approach
At Harrison Spence, we understand how emotional and complex the decision to sell can be, especially for smaller firms that have built their business over many years with strong client relationships at the heart. That’s why our approach is different. We work for both sellers and buyers, helping to align motivations, values, and long-term objectives. This dual representation allows us to:
- Secure the right buyer achieving a good price, but most importantly with a buyer who will respect your legacy
- Make the sale process smoother and more efficient
- Ensure continuity for your clients and team
Our experience shows that a smooth, successful transition isn’t just about financials, it’s about cultural fit. By supporting both sides, we can guide sellers towards buyers who will protect their legacy and provide clients with the same level of care and attention they’ve come to expect.
Our process is fully explained in our Guide to Selling Your IFA Practice, which outlines the steps, considerations, and best practices involved in a well-managed sale.
Whether you’re considering a full exit, partial sale, or a growth strategy ahead of a future transition, we’re here to help. Our specialist knowledge of the IFA market, (given that most of us have worked in the sector as advisors and business owners ourselves), combined with a deep understanding of the challenges facing smaller firms, makes us a reliable partner through every stage of the journey.
If you’re exploring your options, now is the time to plan ahead. Let us help you navigate the change, with confidence, clarity, and care. We look forward to receiving your enquiry