Selling IFA Practice Involves Many Factors worth Considering, Know It Here

There are many grounds or explanations as to why choose IFAs to sell client bank or business. In case you are fortunate, the sale will be a planned strategy part giving you the financial security that is required to retire or invest in business projects. However, most times, IFAs sell their business due to financial difficulty or ill health. They are unable to cope or become disillusioned with the regulatory changes of the industry.

Whatever may be the reason for selling IFA practice, you are once committed means you cannot avoid certain important factors from considering as it will have impact on the sale price and your future security. Certainly the difficulty around this sale of IFA business has lots to take into consideration. This includes right from tax implications to integration of business and there are many ways that a deal may be structured, though for any uniformed seller also there are many potential pitfalls.

For instance,

  • Will the sale include the sale of shares, goodwill and assets or merely a sale of your client bank?
  • Are you ready to accept deferred payment or earn out?
  • Are you ready for a phased exist or clean exit featuring the option to service fewer clients?

The decisions that you take in the sale process early stages will represent the final outcome key, so it pays to get a legal advice from a specialist to help the best deal structure for the circumstances.

There are many factors worth considering before starting the sale of your business. First, confirm if you are prepared to take this decision towards sale. Whatever, may be your reason for selling IFA practice, such as you have begun towards retirement journey or wish to release capital or have a desire to develop business with new resources, and so on. However, the foremost is to consider whether your decision is right for your family and you.

In this sale, confidentiality is a big matter of concern. It is essential to protect the seller and the buyer through acquisition process. Ensuring a smooth process means, you do not want in the marketplace to be known about the sale of your business and you also probably do not want even your staff to come to know about it until the transaction is completely finalized. This is as per your wish and to keep it confidential, an undertaking is entered at the start of negotiations.

What are the expected stages?

The smooth process depends on the parties concerned. Gather the paperwork and information, so that the process is straightforward. Precisely, the checkpoints are:

·       Outline the deal terms after negotiating and enter the terms heads.

·       The buyer will perform financial, legal and compliance due carefully.

·       Advisers are with acquiring firm

·       Consent to control obtained with FCA change, if required.


·       Documentation of formal acquisition is negotiation and prepared.

·       Advisers attend induction hosted by new firm

·       Distribution of client letters

·       Transaction completes

·       Activation of online access

·       Letters of authority processes.