How to sell your IFA business and to stay looking after your best clients? Read on...

Are you a retiring IFA? Do you dream about continuing to look after and nurture your relationships with your clients, without the stresses and risk exposure of running a business? Yes?  Then read on…

Sell and Stay

Selling your IFA business and being retained as an employee to continue looking after your clients can have many benefits, both financially and personally. It means you can still do the best for your clients, but without the additional stresses of paperwork and liability. Sometimes this is known as the Sell and Stay option

Reap the Rewards

• Financial Reward: As you will appreciate, selling your IFA business can result in a significant financial pay-out. Retaining employment as an IFA can also provide a steady source of income, allowing you to continue working with your clients while receiving compensation
• Professional Growth: With this extra time, you can have the opportunity to focus on your core skills and develop your expertise, without the additional responsibilities of managing a business. This can allow you to personally grow professionally and become even more valuable to your clients

An Enjoyable Life

• Reduced Stress: Running a business can be stressful (that can be a total understatement!), and selling your business can alleviate some of this stress. By being employed to look after your clients, you can have fewer responsibilities, such as managing staff and dealing with the day-to-day operations of the business. You can focus on the fun stuff of working with the clients you have developed relationships with over the years
• Reduced Risk: As an employee, you will not be responsible for the financial risks and liabilities associated with running a business, such as legal and regulatory compliance, business taxes, and insurance. So, selling your IFA business can also reduce your risk exposure

Looking after your Clients

Continuity: By remaining as an employee after selling your IFA business, you can help ensure continuity for your clients. Your clients have grown to trust and depend on you and this can remain the same, even if the ownership of the business changes hands

Culture Fit: As stated in the FT Adviser: 

“The three most important aspects to consider are culture, culture and culture.”

The article poses the crucial question:

“Does this company genuinely have my clients’ interests at heart?

Or are they driven by their own short-term commercial gains only?”

Joining any company as an employee, or even considering selling your client bank to them, the ethos and ethics of that company are key

At the end of the day, you know that your clients are people (and these relationships have often developed into trusted personal friendships) and your clients are not just figures on a spreadsheet. It's not about the AUM, but about supporting their personal life’s objectives and aims. Picking the right home for your clients and also potentially for yourself as an employee looking after them, is paramount to ensuring both their and your interests are protected

The Best of Both Worlds

By selling your business but remaining employed to look after your clients, you can help ensure continuity for your clients while providing yourself with a more manageable workload and a steady source of income

If you would like to explore this further and in more depth contact www.truestarlegacy.co.uk or email info@truestartalent.co.uk

Truestar Legacy is a division of Truestar Talent: We are with you every step of the way