Financial advice firms sit inside the same succession wave as accountancy — but the market works differently enough that IFA founders need their own map.
What's the same
The demographics: advice firm founders skew even older than accountants, and internal succession fails for the same reason — the next generation can't fund the buyout. The value logic is also familiar: recurring revenue (ongoing advice fees) is what buyers pay for, and it's typically priced as a multiple of that recurring income or, for larger firms, a multiple of profit.
What's different
- Clients are individuals, not businesses. Relationships are personal to a degree accountancy rarely matches — which makes handover quality even more decisive, for the price and for the clients themselves.
- Regulation shapes the deal. Advice firms carry ongoing suitability obligations and a regulated change-of-control process. Diligence goes deeper: file quality, past business reviews, complaints history and PI cover all bear directly on price.
- The consolidators arrived earlier. Advice has been consolidating for over a decade, so founders face a mature spectrum of buyers — from national wealth managers to private-equity-backed aggregators — with very different intentions for your clients.
The question that matters most: what happens to your clients?
Some acquirers genuinely continue independent, whole-of-market advice. Others move acquired clients toward in-house investment propositions — which may be fine, but is a material change your clients never chose. Ask any buyer directly: will my clients' advice remain independent? Will their fees change? Who will actually sit across the table from them next year? The answers separate a succession plan from a book sale.
Preparing an advice firm for sale
- Ensure ongoing service is demonstrably delivered — reviewed files, documented annual reviews. Undelivered ongoing fees are the first thing diligence finds.
- Clean data in your back-office system; a reconcilable recurring income report is the foundation of your valuation.
- Address complaint and PI history openly — surprises cost more than disclosures.
- Think about your team's adviser contracts and client ownership clauses before a buyer does.
Where we fit
Through the Practice Group platform we partner with financial advice firms alongside accountancy and legal practices — same philosophy: local relationships preserved, back office centralised, founders choosing their own exit speed. If you're two or three years out, that's exactly the right time to talk.
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