Why Clients come first in selling your IFA Business and how do you ensure that they do?

Selling your IFA firm can mean that you will have to leave your clients in the hands of someone new, and for the IFA whose clients are also now friends, this can be a hard and stressful process. So, how do ensure that your clients come first and feel valued and respect whilst selling your IFA business? 

The principle of “clients come first” will be foremost in your thoughts when looking for a buyer.  You will want to prioritise the needs and interests of clients above all else – while this is obviously no bad thing in itself, it can also be so valuable to the sale process for many reasons 

Relationships and Retention

Clients are the lifeblood of an IFA business. As you know, they have entrusted their financial well-being to you and rely on your expertise and guidance. Prioritising clients during an IFA sale demonstrates respect for their loyalty and ensures their interests are protected throughout the transition When an IFA business changes ownership, there is a risk of client attrition. By prioritising clients during the sale, the acquiring party shows their commitment to maintain the existing relationships and provide continuity of service. This approach increases the likelihood of retaining clients and reducing any disruption in their financial planning 

Reputation and Trust

An IFA firm's reputation is built on trust, integrity, and client satisfaction. Neglecting clients during an IFA acquisition would undermine the trust they have in the firm or the retiring IFA, damaging the reputation in the process. Prioritising clients reinforces the commitment to their well-being and helps preserve the long built reputation of being client-focused   

Legal and Ethical Obligations

Advisers have legal and ethical obligations to act in the best interests of their clients. Prioritising clients during a sale aligns with these obligations and ensures compliance with relevant regulations and red tape, such as fiduciary duties and client confidentiality   

Ensuring Long-Term Success

The success of an IFA business, and therefore an IFA business sale, is often tied to its ability to retain and attract clients. By prioritising clients during a sale, the acquiring party demonstrates a commitment to long-term success by nurturing the IFA client bank and positioning the business for continued growth Placing clients at the forefront of an IFA business sale is essential in preserving client relationships, maintaining trust, upholding legal obligations, protecting the business's reputation, and setting the stage for long-term success.  All these will also provide more value to your business when looking to sell As Giles Dunning, financial services mergers and acquisitions specialist and partner at Stephens Scown Solicitors said “Most acquirers will want to assess the quality of ongoing revenue streams – this can relate to how likely the client is to stay with the business post sale and the terms of engagement.” 

There’s Always an Alternative Option

However, if when it actually comes down to it, you simply cannot face leaving your clients in the hands of someone else, then have you considered keeping them?  It is possible to sell your IFA Business whilst still looking after them.  Read our Sell and Stay blog and find out more

How do you know which buyer to pick?

Ensuring the cultural fit for your clients, as well as their processes and fee structures is really important for a happy transition of clients. Choosing who to pick and be daunting. If so, have a chat to our holistic acquisition team, who work with a lot of hand chosen buyers across the country. We take the time to understand you and your business, before suggesting and introducing you to the best fit of buyers for you and your clients needs

If you would like to explore your financial retirement 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