A survey by Investec Wealth & Investment shows that merger and acquisition (M&A) activity is expected to increase over the next two years amongst small independent financial advisory (IFA) firms.
Of those IFAs questioned in the survey, the majority (55 per cent) felt that M&A would increase amongst small firms, with 37 per cent forecasting a rise in M&A amongst larger firms as the industry continues to consolidate at a rapid pace.
Advisers said the biggest influencing factor in their decision as to which firm to sell to was in ensuring the on-going delivery of a high level of client service. Securing the best financial return and being able to remain involved on a semi-retired basis were also cited as key influencing factors for the vendor.
Head of Intermediary Services at Investec Wealth & Investment, Mark Stevens, said: “M&A in the IFA sector will continue apace over the next few years as advisers belonging to the baby boomer generation will be looking to hang up their boots. When you add the impact of new and more complex regulation and better technology you have an ideal environment for consolidation.”
At Beavis Morgan, we have acted on significant number of M&A deals for SME and owner-managed businesses. We too are entrepreneurs and have done deals as principals and as advisers to clients. Our strong corporate finance and advisory offering, as well as our understanding of priorities for all stakeholders in the often challenging sale process, positions us well to assist in both the buying and selling of businesses.