Succession planning is, for a growing number of advisers, one of the most pressing issues facing their business.
As many advisers approach retirement there is a need to address the legacy, and saleability of their firm.
Certainly there are signs that, despite economic uncertainty, companies are hungry to acquire successful financial advice firms.
Tim Scott, partner for Knights Professional Services, says private equity investors have huge sums of cash to invest and are hungry for acquisitions, while overseas corporates are keen to get a foothold in the UK; in part fuelled by the devaluation of sterling.
Entrepreneurs Relief is also creating further opportunities for vendors who are able to extract their proceeds at a 10 per cent capital gains tax.
He adds: “Vendors should be prepared for deals to take longer than they did pre 2008. The scope of due diligence has increased and is more onerous. But well-run companies should have nothing to fear - as long as they have good systems and management information in place, no outstanding litigation and a great management team, they will be attractive to a variety of parties.”
This guide to succession planning will aim to address some of the key issues around the sale of your business and what you need to consider. From this guide you will learn how to assess your workforce and the pros and cons of doing so; how to develop potential; how to approach hiring and how to create a culture that retains the talented.
Contributors: Helen Floor, founder of 1-1 Recruitment; David Murphy, managing director of Talent Acumen; Lisa Winnard, business services director at Sesame Bankhall Group; Sara Barrett, partner at Mills & Reeve; and Tim Scott, a partner for Knights Professional Services.