Nucleus has launched a guide which gives advisers information on developing a succession plan, whether that is an internal strategy or an external sale.
The guide, titled ‘Planning your exit’, also outlines what the options and challenges are and how to execute an effective exit.
Rob Stevenson, director of business development firm the Kingmakers Group, said: “Once the sale process starts – particularly if it’s to an external buyer – advisers will want to have as much space and time as possible, as decisions come thick and fast and it can be exhausting.”
Dan Farrow, director of SBN Wealth Management said: “Too many financial advice firms have skeletons in their cupboards, so by maintaining some control of their own business they are keeping those skeletons from coming out.”
He also claimed some IFA firms are running cash cows, meaning the existing owners are unlikely to see much value in selling their firm for three times recurring income, which he said could easily disappear if the client bank isn't managed correctly.
Mr Farrow said some firms could be put off selling their business to consolidators because the owner is expected to work with them for two years even after the deal is complete.
"Basically the owners would be working for the consolidator for next to nothing," he said, adding: "Working for someone when you're used to being the boss is a nightmare."
katherine.denham@ft.com
