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Businesses selling up as review looms

Big numbers of IFAs are selling their businesses because they want to get out of the industry before changes brought in by the retail distribution review, according to a business set up to market IFA firms.

For Sale Sold, which was set up in January by Shakespeare Putsman LLP partner Gareth Fatchett, says demand for the service has increased massively since the RDR discussion paper was released, with 112 IFAs asking the firm to sell their businesses.

Fatchett says the average age of IFAs looking to sell is 58 and they cite the RDR as one of the main reasons that they want to get out of the industry. He says he has so far taken on 21 firms to sell.

Fatchett says many of his buyers view the RDR as a positive move and see consolidation as the future.

The average size in turnover of the businesses up for sale is between £500,000 and £750,000, with selling prices between three to four times recurring revenue streams.

Fatchett says that a lot of interested buyers are from adviser firms in the top 50 as well as a number of life insurers and banks which are looking to increase their distribution.

He says: “Since the RDR, I have been blitzed by advisers wanting to sell their busin-esses, with over 100 enquiries from advisers since the beginning of July. People mention the changes in the market as the main reason for wanting to sell.”


Add voices to debate

I concur whole-heartedly with Lifesearch’s Tom Baigrie’s assessment of the retail distribution review and I thank him for putting his head above the parapet.I would urge the independent community to follow the lead of Tom and others and add their voices to this debate before it is too late and the die is cast.Alan ParkinsonPrincipal […]

Munich Re buys software firm

Munich Re has acquired business processing and underwriting software firm Allfinanz in a deal worth euro 48m. Allfinanz software will now be incorporated into Munich Re’s medical underwriting questions.

Aifa warns on RDR damage to consumers

The Association of Independent Financial Advisers claims RDR proposals for changes to firms and the advice system are likely to have a detrimental impact on consumers, in its fifth and final Retail Distribution Review issues paper released yesterday.


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