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Selling your business and reaping rewards
Financial advisory firms face massive challenges. But the need among UK consumers for expert, impartial financial advice is greater than ever. Advisers who develop well-managed businesses with a clear proposition and stable revenue streams are potentially building a highly valuable asset for themselves.
In this report, we have looked to determine how advisers can optimise that asset value.
Drawing from exclusive analysis into recent Mergers and Acquisitions activity by Ernst & Young, we assess how advisory firms are being valued. We also outline the attributes that have characterised those advisory businesses that have achieved a premium valuation in the market. Finally, we consider how an exit from an advisory business needs to be handled to ensure the projected value is realised successfully.
The credit crunch of 2008 and the global economic slowdown has had a significant effect on transaction activities and valuations in the sector during the first half of 2009. This may not be the best time to sell a business unless you have to, but it is certainly as good a time as any to start modifying a business to improve its value.
After all, the attributes that make businesses more attractive to acquirers are also those that make it more able to withstand tough market conditions.
So whether you are an IFA looking to exit the advisory sector or you simply want to manage your business better, we hope you find this report of interest and practical value. 
Jasper Berens
Head of UK Retail
J.P. Morgan Asset Management
Article last updated: Feb 4, 2010
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