How long does it take to sell a financial planning firm? UK
- Simon Bourke
- 4 hours ago
- 6 min read
9th March 2026
The timeline for selling a financial planning firm or IFA depends on a number of variables. Deal structure, regulatory history, the buyer's internal process, and how prepared the seller is can all have an effect on how long a transaction takes. That said, where a firm is engaged, organised, and ready to proceed, we typically see deals take somewhere between six and nine months from the initial conversation with us through to completion.
A typical IFA sale timeline
Up to 2 months to find a buyer and agree heads of terms
1 to 4 months for due diligence and documentation (depending on whether the deal is structured as an asset sale or share sale)
1 to 2 months for regulatory and client approvals
There are always exceptions. The shortest transaction we supported was a large asset purchase which completed in just six weeks. At the other end of the scale, deals can take well over a year to complete. However, for most firms, six to nine months is a fair expectation. Larger or more complex firms should plan for the upper end of that range or beyond.
Before you begin: preparation
The most effective thing a seller can do to shorten their timeline is to prepare before going to market. For a practical starting point, read our step-by-step guide to preparing to sell your financial advice firm or explore our pre-sale planning hub.
Stage 1: Finding a buyer and agreeing heads of terms
We start with an initial conversation to understand what you want from the process and what you are selling, so that any introductions we make are tailored to you. This typically covers personal timelines, preferences around deal structure, post-sale involvement, and the shape of the business.
For sellers who are actively engaged and ready to proceed, we aim to have heads of terms agreed within two months of that first conversation. The speed of this stage depends partly on the buyer’s internal process, but a prepared seller with clear goals and well-organised records can also help to shorten it.
Once the heads of terms are signed, the transaction usually enters a period of exclusivity, typically lasting 90 to 120 days. During this window, the seller commits to working solely with the chosen buyer and cannot progress parallel discussions with others. This gives the buyer certainty while they conduct due diligence and finalise legal documentation. Sellers should be clear on what they are agreeing to when signing heads of terms, and should ensure the exclusivity period is long enough for the buyer to complete their process without creating unnecessary pressure.
Stage 2: Due diligence and legal documentation
Due diligence is where deal structure has the most visible effect on timing. Asset purchases tend to move faster, typically completing in one to two months. Share purchases are more involved and generally take three to four months, reflecting the broader scope of review a buyer undertakes when acquiring a company rather than its client book alone.
If you are not yet clear on which structure is better suited to the sale of your firm, read our guide on the differences between asset sales and share sales.
The pace of this stage is also affected by the seller's responsiveness. Being quick to answer questions and provide information is key to maintaining momentum.
Legal documentation is drafted during this stage and finalised as diligence points are closed out. Where both sides are aligned and the deal is relatively straightforward, this can progress quickly.
Stage 3: Regulatory and client approvals
The regulatory pathway at this stage depends on how the firm is authorised. Directly authorised firms involved in a share purchase require FCA change in control approval, as set out below. Appointed representative firms do not require FCA change in control consent. Instead, the acquiring principal network must accept the incoming firm, and the outgoing network must formally release it. This process has its own timeline and is not always straightforward - particularly where there are conditions attached to the release or where the incoming network requires its own onboarding and due diligence steps.
For share purchases of directly authorised firms, FCA change in control approval is required. The FCA has up to 60 working days to assess a notification once it is considered complete, but it is worth noting that it can pause the clock if further information is needed. It is also worth emphasising that the 60-day period does not begin until the FCA formally accepts the submission as complete. An incomplete or poorly structured notification can sit unacknowledged for several weeks before that clock starts, so the quality of the change in control submission matters considerably. Sellers should assume at least two months for this stage, and potentially longer if the submission needs revisiting.
Some transactions also involve a client communication or consent process, for example, where client agreements need to be novated to the acquiring entity.
Where the acquired firm’s clients are held on a platform or within a network arrangement that will not continue post-acquisition, a re-papering or platform migration may also be required. It does not always sit on the critical path to legal completion, but timing or workload should be factored into planning early.
What causes delays
Most transactions that run beyond nine months do so for predictable reasons. On the seller side, the most common causes are incomplete data, complicated regulatory history, and slow responsiveness to information requests.
On the buyer side, delays can stem from insufficient team resources for the required workstreams. Funding can also cause timing issues and sometimes derail deals.
Some buyers operate multi-stage internal approval processes that can add extra time at each stage. Understanding a buyer's workflow early is important for a seller. This is typically covered in full detail during a due diligence kick-off call, which helps sellers calibrate their expectations by understanding what is happening and when. The process itself is rarely the issue; it usually comes down to misaligned timelines between buyer and seller.
Legal teams unfamiliar with financial services transactions can materially hamper transactions. Sellers should ensure they are represented by a corporate solicitor who specialises in the sector and who has no conflicts, such as involvement in deal broking. Chapters Capital maintains relationships with several vetted specialists and can make introductions on request. We have no fee or commercial arrangements with any of them; they have simply earned their place on that list by looking after sellers we have worked with.
FCA processes can also introduce factors outside of both parties’ control. Understanding these risks in advance and preparing thoroughly before going to market is the most effective way to keep the process on track.
Stage 4: Completion and handover
Once due diligence is complete, legal documents are finalised, and any required approvals are in place, the transaction is ready to complete.
Completion can be structured in a couple of ways. In a simultaneous exchange and completion, the sale and purchase agreement is signed, and the transaction is completed on the same day, with initial consideration transferring immediately.
In a split exchange and completion, contracts are exchanged on one date, and completion follows later. When split, the conditions for completion are typically regulatory approvals. The deal can be completed once this and any other required conditions have been satisfied. The latter is more common in share purchases of directly authorised firms, where FCA change in control approval must be obtained.
Almost all deals in our sector include deferred consideration or an earn-out. This means the seller's obligations do not end at completion. In almost all cases, there will be a period of ongoing involvement. Timelines can vary from a couple of months to a few years. The length of this period is usually agreed upfront and documented in the heads of terms, but it is finalised and reflected in the legal documentation.
Speak to us about your likely timeline
If you are considering a sale and want a realistic view of how long it might take for your firm, Chapters Capital offers a free, confidential consultation. We can talk you through the likely structure and what is most likely to speed up or slow down your process based on where you are today.
Considering your next chapter?
At Chapters Capital, we specialise in financial planning and wealth management M&A.
Whether you are considering a sale, merger, or want to learn more about buyers in the space, please contact one of our professional associates today for a confidential, no-obligation consultation.
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