Retiring IFA - Blog Archives

After being in this mergers and acquisitions game for well over a decade, believe it or not I have pretty much seen it all when it comes to buying and selling IFA Businesses

And IFA due diligence... Or should I say 'lack' of IFA Due Diligence has unfortunately been a hot topic on many a deal I have seen in my time

IFA acquirers have ended up with a business that wasn't worth what they paid for it until after signing on the dotted line...

… And IFA sellers have ended up signing away their business to an acquirer who in the end didn't hold up their end of the bargain once the deal was done!

We as a business will always actively encourage IFA buyers to do their due diligence on a potential acquisition

However on the flipside, you as a potential retiring proprietor need to ensure you carry out the same... If not more, due diligence, than the acquirer!

Why? 

Well I would've thought it was obvious... You wouldn't want to choose the wrong type of acquirer to pass over your life's work to and for less than what it is worth would you?

And... I am right in assuming that you only want to retire the one time? 

And do it right the first and only time so you can sail away and live out your best life? 

Excellent.... then we are on the same page!

So far I hope I have made the point of just how important it is for retiring proprietors to do their due diligence on potential acquirers, however if I need to crank it up a notch then let me introduce to you the eBook on The 3 Biggest Mistakes when Selling Your Financial Services Firm. By clicking here and spending 10 minutes of your time.... that's right, just 10 minutes, I can show you just how important it is to be asking the right questions to your potential acquirers

Questions such as:

Are they serious acquirers? 

Unfortunately when you start the process of selling your IFA Business, you will come across acquirers who come to the fore front quickly. Initially they will charm you, and they will talk the talk... but realistically it is those types of acquirers you need to avoid as they lack any real conviction... Or real funds to actually walk across the finish line with you.

Letting your self be dragged over half way through the process to find out that you have attracted this type of acquirer will leave you disappointed and disheartened, but more importantly you will have wasted valuable time and money to never see an end result and worst of all...

… You will have to start the process all over again! 

What is their acquisition history?

If they have acquired before then...

… How many businesses have they acquired? 

What size of business have they acquired in the past?

Have previous acquisitions successfully fit in with their business model? 

Have they been able to retain the clients after an acquisition has been completed?

Looking back at a firms previous acquisitions you will be able to see trends, and if you dig down deep enough you will quickly be able to deduce whether your IFA Business fits in with what they want to acquire. If your firm doesn't look it meets their previous acquisition criteria then there is a strong chance you are wasting your time! 

Funding

I can tell you now that the buyers who can't stop boasting about having lots of money to throw at you, are usually the ones who are going to leave you frustrated and disappointed when that big premium offer they promised you, doesn't come to fruition.  

Just one of the ways to avoid being won over by a 'talker', is to get something on paper...

… Because if they are willing to commit to a signature that proves that they will pay what they say they are going to pay, then you know you aren't just wasting your time! 

All this might seem pretty obvious to you, but did you know that over 65% of IFA sellers make at least one of the mistakes mentioned here in the eBook which has immediately meant they were unable to leverage a premium price for their IFA Business! 

And if you too, want to avoid getting a premium offer for your IFA Business then you won't click here to download our eBook to make yourself aware of the types of unsavoury buyers who you should never ever sell to under any circumstances! 

Best Wishes

Stephen Hagues

PS. So, how did you find the eBook? No doubt your mind is ticking over isn't it! Well, if you want to go more in depth on how to approach your due diligence, then click here to book in with our highly trained experts for a free, no obligation discussion now! 

If you were drowning and someone offered to throw you a life jacket, how much would you pay for it?

How much would this life jacket be worth? 

All of your income? 

It would be worth everything! 

Compare this to how much you would pay for a life jacket now whilst you are sat reading this email... 

Just as the life jacket's value drastically differs dependant on the situation, the value of an IFA business to you depends on your current situation... 

Value is indeed in the eye of the beholder... 

The question then becomes, how does the beholder time his acquisition to maximise value? 

Below are three key acquisition indicators that signal when the timing is right for youto take on additional clients through acquisition. 

 1. Exhaustion of client referrals and local contacts 

Initially good service, word of mouth, marketing efforts and abnormal returns can spread like wildfire amongst your addressable market. 

However, there comes a point where the channels for organic growth start to dry up and external options become more attractive... 

2. Generation of excess cash in a low yield environment

With interest rates low and expectations of rate hikes squandered, it is worth thinking about the low opportunity cost of not acquiring, especially while additional capital remains cheap... 

3. Missing out on consolidation by the non-consolidators

In few instances over the last decade have we seen external market forces create an environment where scale is more attractive in the industry than today.

If you have not acquired recently, it may be worth capitalising on these market advancements that have driven acquisition activity in the IFA space to an all time high... 

If you can resonate with any of the above mentioned factors, then the timing is right for you to take on additional clients through acquisition. 

 Do not wait until the optimal timing has passed and factors suddenly turn against you, download the eBook now (only 101 free copies available). 

Don't wait until you are drowning before you buy the life jacket! 

Initiate the process now by reading this short 10-minute eBook that will share with you the nine factors that accurately predict a firm profit uplift potential.

Best wishes,  

Steve Hagues

PS. Discover the five fatal errors when buying an IFA practice by clicking here

Every day IFA owners make terrible mistakes when selling their business and as a consequence they end up losing big money

Any hard work and investment they have made over the course of their working life gets washed away in no time at all

The bottom line is that selling your IFA Business is not as easy as you may think and there are pitfalls to avoid that you wouldn’t even think are pitfalls

Now you may be thinking

Well I am not even thinking about retiring so I don’t need to know this yet 

Or

I can leave it until later, I have plenty of time

Well the truth is

You don’t

And thinking otherwise is your first mistake

Timing is key so you shouldn’t wait too long to sell and 

Alternatively don’t give yourself as little time as possible to plan your exit strategy properly

Click here to download our eBook and find out why both these factors could inevitably cause you to miss out on a premium offer

Because the perfect timing might not be when you think but if the right acquirer comes along and offers you the best price then it is the right time

And you don’t want to wait too long

What if you miss a lucrative time in the market because ‘it wasn’t the right time for you

You could end up missing out on the best offer

Plus you must give yourself time to plan in advance otherwise you will come across to potential acquirers as desperate and disorganised

If you are thinking of selling your IFA firm within the next 5 years it would be extremely beneficial for you to start planning and preparing your firm for a valuation now

Potential acquirers will know what to look for and know what they want out of their acquisition

And they will know straight away if you have been sloppy and rushed your housekeeping which again will result in a low offer

The proven steps on how to groom your IFA Business for sale so you can acquire a serious and attractive offer is outlined in our free to download no obligation eBook so click here to get your copy now

Over 90% of IFA Sellers that we surveyed were happy to tell us that their IFA Business and they themselves were much more prepared and ready to achieve that premium offer after reading the eBook so click here to get yours now

With so much to think about and so much to do it can be easy to make the most expensive mistake of all 

Which is not actually knowing how much your IFA Business is worth

And it is so important to know the value of your IFA Business in advance of preparing to sell so that you don’t get caught off guard

Click the link here to speak to one of our highly trained consultants who can go through a no obligation valuation of your IFA Business

And inevitably we can help you knock those lowball offers out of the park

Best Wishes

Stephen Hagues

PS. Don’t waste time

Discover The Seven Steps to Selling Your IFA Firm by clicking here

If you had one chance

One opportunity

To seize the best value for your IFA practice

Would you use it

Or just throw away extra cash

When negotiating the best deal structure for your IFA practice, one slip of the tongue can literally cost you thousands in a higher sale price

Discover the 9 key factors you must be aware of before beginning negotiations on the sale of your IFA practice that will stop you from throwing cash down the drain byclicking here now to read our eBook (as recommended by 89% of readers to date)

For example, if you tell me that you are suffering from health issues and are concerned about whether you can work so many hours, I can then use this information to construct effective threats...

As it stands your family will receive no value for your IFA practice if you aren’t there to protect the goodwill

Better to do a deal sooner and for a lower offer and have peace of mind that they will be safe

Well you need to enjoy and spend time with your family whilst you still have the energy to do so I can make that happen for a lower offer which seems like a fair price to have more fun with your loved ones

Considering your current situation I’ll make you an offer, sell to me now for a lower offer and I will keep you on in a consultancy role indefinitely depending on how your health progresses then you get the best of both worlds

Whatever your personal situation may be understanding what to do so you aren not unwittingly conned out of thousands of pounds by being caught off guard is essential to realising the value you deserve

Whether it be overall sale price

The right place for your clients

The right home for your staff

The best transition option

Or something else

You need to have confidence and understand the negotiations mechanisms

Anchor too low in your initial conversation and you will be doomed throughout the process

Download our recently released and highly popular eBook on avoiding negotiating yourself out of cash now by clicking here

100% of our readers have said that they learnt something that wasn not on their radar with respect to negotiations technique that they believe will help them secure a premium price for their IFA firm in the future

Even if you are years off looking at exiting the professional tools outlined here will outline the 5 tactics that stop any negotiations failing

Of which understanding tactic 1 will help 85% of failing negotiations

Invest 10 minutes of your time now into reading the eBook and save yourself thousands down the line by being prepared in advance for low ball offers

Best wishes  

Steve Hagues  

Founder, Retiring IFA  

PS Discover how some IFA are inadvertently selling themselves short and losing out on up to 50% when negotiating their IFA businesses sale and so much more in our eBook by clicking HERE