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Suuqea warns firms not to sell in current climate

Consultancy firm Suuqea is warning owners of IFA firms not to rush to sell their businesses in the current economic climate ahead of the RDR.

Suuqea managing director David Cox says that the combination of the current climate and low stock market levels reducing the level of renewal income means now is not the ideal time sell.

He says: ‘There are positive signs that the economy is recovering and so, without any real effort, the underlying value of the business ought to increase over the next two years. However, during this interim period, IFA business owners can use the time wisely by ensuring that their business model is robust.

“Implementation of the RDR is more than two years away so there is no advantage to be gained by selling a business now in a depressed market. It is much better for a business owner to keep all options open and to build up the value of their business in the interim. If, in two years time, the owner is still committed to selling the business, it will then be in a far better shape to command a higher value than at the present time.”

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