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Keep the service levels up to minimise client loss

Keep the service levels up to minimise client loss

Recently acquired firms should maintain its standards in service to ensure the retention of business and prevent clients jumping ship, Stephen Hagues has said.

The founder of Resolution Foundation and Retiring IFA said that client type match and service type match were vital in the development of a business, and needed to be kept in place after any mergers or acquisitions.

He said: “A client that keeps getting what they have been getting (service) will keep doing what they have been doing (being a client).”

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“Ensuring an acquirer is experienced with the client type and can provide the same level of service goes a long way in ensuring the new organisation is fit for purpose.”

It is only when the new or enlarged firm is fit for purpose that all stakeholders (buyer, seller, clients and staff) can really win, Mr Hagues added.

Adviser view

Tim Sutcliffe, managing director at Pi Financial Dixon Sutcliffe & Co, based in Shropshire, said: “I agree that maintaining the level of service clients are used to is a must. Sometimes when a company is under new management, they are guilty of carving out that golden standard which made the company strong.”