Nearly one in three (30 per cent) independent financial advisers (IFA) are planning to sell their business or are considering their options for a potential sale, a survey from AFH Wealth Management has revealed.

The research, conducted by Goodman Lantern, formed part of a whitepaper that sought the views of IFA owners, management teams, and senior advisers in the UK.

Two thirds (66 per cent) of IFAs believed that recent regulatory changes would prompt more advisers to sell within five years, while 40 per cent felt rising operational costs were driving consolidation in the IFA sector.

Although 81 per cent saw consolidation as a positive or necessary evolution within the industry, 96 per cent of IFAs had concerns about selling their company, particularly around staff retention and wellbeing.

Furthermore, 48 per cent of respondents had no formal succession plan in place, while 16 per cent thought selling would have a negative impact on their clients.

The research also found that cultural alignment was essential to successful acquisitions, with 98 per cent of IFAs stating that cultural fit was very or somewhat important.

“This white paper offers a timely and important snapshot of the IFA landscape,” said AFH Wealth Management CEO, Alan Hudson.

“With a significant number of advisers considering succession or sale, it’s clear that cultural alignment, client care, and staff wellbeing must be front and centre in any acquisition strategy.

“At AFH, we’re committed to ensuring that consolidation benefits everyone involved – from advisers and their teams to the clients they serve. I hope that this paper gives advisers some food for thought when considering their future.”

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