More than a quarter of IFA business owners plan to sell within the next five years, according to research by Harrison Spence.
The research for the financial services consultancy firm showed 6 per cent plan to sell within the next year and 7 per cent within the next three years.
But Brian Spence, managing partner of Harrison Spence, said more than half of IFAs have no plans to exit their business at all.
He said: “While it’s encouraging that so many want to continue running their businesses, it is also likely that many haven’t considered their options yet.
“Much of an adviser’s work is about getting clients to think about the longer term and plan ahead.
“I would urge business-owners to take the time to do the same for themselves without delay.”
Of those IFA business owners looking to sell up, just under a third - 31 per cent - are aiming to retire completely, with a further 11 per cent looking to retire from the industry to start a new career.
| Stats |
| Only 13% of the advisers Harrison Spence surveyed plan on selling in the next three years, despite valuations having risen by as much as 25% over the last 6 months |
| Just under a third (31%) are aiming to retire completely, with a further 11% looking to retire from the industry to start a new career |
| Of those thinking of selling, the majority favour a regional firm (34%) or small local IFA (27%) over a large national acquirer (18%) |
However more than half of sellers looking to continue to work for any acquiring firm for a transitional period - 33 per cent - or for the long term - 20 per cent.
Mr Spence said: “In business, its always helps to have a destination clearly in mind; it’s tough to work out a meaningful roadmap to follow without one.
“It really is a seller’s market today and prices may rise further as competition for high-quality businesses grows.
“But you still need to plan well ahead to ensure you get what you want from any future deal.”
Adviser view
Tim Rodgers, a financial planner with Leicester-based TM Asset Management, said: “We are a relatively new IFA firm so we are probably not as mature as part of the population.
“I can understand that for a lot of mature businesses where the IFA is in their early 50s or 60s that might be their position.”
