The number of sole traders looking to sell their business in 2014 could end up 60 per cent lower than the year before, analysis by Retiring IFA suggests.
Post-RDR analysis by the Ripon-based firm found that 127 UK sole traders had come to market with it between December 2012 and December 2013, compared to 25 between January and June 2014.
Jonathan Barrow, the company’s regional director, said: “Based on the assumption we will double the sole traders in the second half of this year, we are more than 60 per cent down on sole trader numbers since last year.
“I would say that the assumption we will double the 25 sole traders seen this year is a cautious estimate due to the fact the industry generally has two months off, in summer and Christmas.
“In reality we could well see ourselves 70 per cent down on last year.”
He added: “In essence 80 per cent of our current acquisition opportunities contain long-term handover plans and often see the incumbent remaining in situ until retirement.
“This is driven by uncertainty in the market and the advisory view that we still have lots of change to undergo in the coming years before the industry hopefully stabilises.”
He said the company still helped sole traders who were wanting to sell their business to quality acquirers. However, the numbers looking for an exit strategy had noticeably diminished in place of larger-scale bespoke acquisition opportunities.
