On the flip-side Mr Loosmore suggested a buyer also needs sufficient technology in place to integrate the acquired business into their own as quickly as possible.
He added: “If you are going to buy a firm which maybe has 10 advisers and however many thousands of clients and you are trying to onboard that without the right technology, you have got issues.”
Elizabeth Basten, chief marketing officer at digital adviser Wealth Wizards, said if a buyer is looking to purchase an advice business that will survive in the future, taking into consideration the profile of its client base and potential for growth, then innovation is key.
Ms Basten said: “If you are looking at practices and the advice process in the future, if you don’t embrace technology and use it in a way that facilitates connections to grow your business and retain the customer base, then there won’t be much to buy.”
Rachel Mortimer is a reporter at FTAdviser and Financial Adviser