Consolidators snub succession option

Ian McIver

I am so pleased to see in the survey published by Russell Investments (FA 11 June) that IFAs are at last stating a preference for succession rather than buyout – it is something I have been advocating for several years now.

I recently attended a ‘consolidator’ conference. Note: whether you are in the business of buying firms or taking them on in a successor role you are unfortunately placed in the same consolidator box. Most of the discussion was all about buyout options, how to determine the value of firms and consequential tax implications.

Basically, there was very little discussion on the much simpler second option of succession and continuing to deal with clients who value the adviser they have always dealt with.

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The value in an advisory firm is the relationship between adviser and client. Selling it cheap by way of a buyout has never made sense to me, but it seems the consolidator market constantly focuses on that option.

Ian McIver

Development Director,

Nexus IFA,