How to Prepare to Sell Your Financial Advice Firm (2026)
- Simon Bourke
- 14 minutes ago
- 9 min read
4th February 2026
Selling your firm is one of the biggest decisions you’ll make as a financial planning business owner, yet it’s often the easiest to postpone. Whether you’re five years out or see a sale closer on the horizon, understanding the sale process early puts you in a far stronger position to secure a deal that reflects the time and work you’ve invested into your business.
For most business owners, selling means the end of a chapter you’ve spent years, sometimes decades, writing. The business may carry your name, your values, and relationships you’ve nurtured over a long period of time. It’s completely normal to feel a mixture of excitement, anxiety, and even grief as you move towards a sale.
What does a good sale look like?
The right deal is not only about securing the best valuation but also about finding an acquirer who is a genuine cultural fit, led by people you trust to look after your clients and staff. Our view is that, given the significant trust you have built with your clients over the years, the success or failure of a deal depends on the fit. When we discuss fit, it really boils down to how you and the acquirer view service and value for clients.
You’re only going to sell your business once, and we believe you should aim to reach a point where you can confidently explain to clients and staff why your chosen buyer is the right home for the business. If that compatibility isn’t there, it doesn’t matter how much money is on the table, the deal is most likely not going to succeed long term.
We understand the significance of selling and the preparation required, which is why in this guide, we walk you through all of the key actionable steps you can take to prepare to sell your IFA or wealth management business.
Step 1 – Learn more about what selling a financial planning business entails
This is where looking at our collection of guides and blog articles are extremely helpful. This article is a great place to start. For example, if you’re not already certain about the differences between asset sales and share sales respectively, check out our guide on that here.
Step 2 – Define your personal goals for selling your business
Nothing has to be 100% set in stone before you start, but the more specific you can be about what it is that you want for your clients, your staff, and you as an owner, the better we can prepare for your sale.
The trust and relationships you have with your clients will have no doubt taken years to develop, so it is essential that they remain front and centre when deciding which potential acquirers you should speak to.
Similarly, the staff that have played a part in supporting you and your clients need to be taken into account.
Key questions to consider:
How do you want your clients to be treated once you pass the responsibility of looking after them to a new adviser?
What sort of service do you expect clients to receive from a new firm?
What qualifications and life experiences would a new adviser need in order to properly understand and service your clients?
What are your staff’s short and long-term ambitions in their careers? Does this move help or hinder them?
How long do you want to remain in the business once the transaction is concluded?
What are your personal plans for when you are retired?
Are you looking for investment rather than an exit? If so, what does that look like? Who is the right investor partner for you and why?
How much do you need from the business sale to meet your financial goals?
If you do retire from this sector, what are your plans professionally (if any)?
Some of these questions may be exciting, and some may prompt concerns, but the more thought you put into them upfront, the more likely you are to achieve the kind of exit you are hoping for. For example, if your plans require a certain multiple that you are not quite at yet, you’ll need to put a plan in place to maximise the value of your advice firm before you sell.
Another important factor is, of course, your timeframe. Before making any concrete plans for future projects, make sure you have a good sense of how long the sale of a financial planning business typically takes.
Step 3 – Assess your business
Once you know what you want a deal to look like, you need to have a clear idea of what it is you are selling. Buyers will want to fully understand the shape and structure of your business, so it’s worth getting your data together and knowing your metrics so none of their questions come as a surprise. A prepared seller is a much stronger position than an unprepared seller.
Start with the structure of your firm: how many staff do you have, and are they likely to want to stay on? Are your advisers employed or self-employed? Are all your contracts in place and correctly drafted so they are legally sound? Are you directly authorised by the FCA, or operating as an appointed representative? If an AR, what does your network contract look like?
Buyers will also want reassurance around historic advice risk and liabilities, and whether there are any obvious operational complications to plan for, such as commercial property leases that may need to be dealt with as part of the transition.
An acquirer will look closely at client concentration risk too. Are you overly reliant on a handful of large clients, or on a small number of introducers for new business? Make sure you can clearly evidence client retention and ongoing service delivery (for example review frequency, service tiers, and how you document ongoing advice). Additionally, be ready to explain your compliance history: complaints, any FOS involvement, and any remediation work. Due diligence will be carried out to verify information provided and confirm the business is as presented.
On the other side of the coin, you should also consider the value in your business, and what could be the key drivers of a deal. What is your recurring revenue, and what is your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation)? What is your charging model? Are you acquiring new business?
In short, think about what makes your business attractive. Some of the core value in your business might sit in your client base, your growth potential, your location, or your team. Think about what you do that clients genuinely value, and be clear on the split between recurring and one-off income, and how predictable future revenue is based on existing client agreements.
It is also important to note that value is subjective. Yes, there are industry norms and comparables to point to in an actively consolidating marketplace. However, your business could be significantly more or less valuable than a firm of a similar size. Our role is to spend time with you up front to ensure you understand the valuation ranges you can expect and the typical conditions that come with each deal type. Where we see elements of your business that will command a premium from certain buyers, we will highlight them to you and explain why. Equally, if there are factors that detract from your business’ value, we will be clear with you about them early on so there are as few surprises as possible.
Step 4 – Put together the right team to help you sell
You’ll need the right people around you early. Selling your business can be a tricky process, but having a good team makes it smoother, faster, and far less stressful.
Intermediary (broker)
An intermediary should run the process. A buyer will know more about buying than a seller knows about selling which means a direct approach can often result in a seller leaving value on the table.
We help position and present the value of your firm, and bring the right buyers to the table that are specifically aligned to your business. Chapters Capital specialises exclusively in financial planning, has terms with over 100 buyers, and understands what sellers are looking for beyond just headline price. Just as importantly, we value your time, and won’t introduce you to buyers who can’t meet your non-negotiables.
You will spend a lot of time with your broker during the process so our advice is to go with someone you can work with, who you trust, and who has experience successfully completing transactions in this field.
Accountant
A good accountant will help you understand which deal structure is likely to be most tax-efficient in your circumstances and will answer any questions you have about that part of the deal. In most cases, we see the current business accountant assist with the transaction due to their longstanding relationship with you and intimate understanding of the business. We welcome the chance to speak with your accountant early on to sense check any plans and ensure we are all moving forward in the same direction.
Solicitor
You’ll need a solicitor familiar with these kinds of transactions who can keep momentum going. We always recommend using a sector specialist. We can recommend reliable, well-priced solicitors, so make sure to get in touch if you’re unsure who to use.
Step 5 – Prepare your documentation and data
When it comes to preparing your documentation ahead of a sale, there is no single definitive to-do list that applies to every advice firm.
That being said, you’ll need to know your numbers for the business. What are your revenue figures for the previous and current year? What is the split between recurring income and new fee income? What is the cost base in the business, and what are true operating costs versus discretionary items that could fall away without impacting the business?
Knowing your client base is also crucial. How many individual clients do you look after personally and how many does your firm manage? What does that number look like if you consolidate individuals into households or family units? How many meetings per year do you have?
You need to be able to evidence the service provided to clients and have robust documentation around this area. We have spent many years refining our information request list and distilling it down into the things all buyers look for. As part of the process when you work with us, we will complete this alongside you to get everything in order before commencing the sale process.
Step 6 – Meeting buyers
When your broker introduces you to buyers who fit your criteria, it’s worth having a written question list ready. It keeps each meeting consistent and makes it far easier to compare your options afterwards with the information you actually need. We set a clear and concise agenda prior to initial meetings to ensure each meeting is structured and productive.
We also take care to keep the buyer list focused, so the people you meet align with what you’re looking for and how you run your business. We will always highlight why other firms didn’t make the meeting shortlist.
The set of questions you ask should go beyond valuation. Ask about their integration approach, their client communications plan, how they handle adviser and staff retention, whether they expect any service model changes, what they expect in terms of platform/proposition alignment, and what they will need from you post-completion (for example, a handover period or ongoing involvement).
Conclusion
Preparing to sell an IFA or wealth management business is rarely about doing one big thing all at once. It’s about getting clear on what you want, understanding what you’re selling, and then putting the right people and information around you so the process runs smoothly when you do decide to move forward.
If you take anything from this guide, let it be this: start earlier than you think you need to. The firms that achieve the best outcomes are usually the ones that arrive at buyer conversations organised, realistic on timings, and confident on their non-negotiables.
If you’re considering a sale in the next one to five years and want to sense-check your options, Chapters Capital offers a free, confidential consultation. It’s a chance to talk through what a deal could look like for your business, what preparation would have the biggest impact, and what the likely route to market is in your circumstances.
Chapters Capital insights page
Whether you’re looking to retire from your financial planning business, or unlock the value in the business in order to invest in a new project, our insights page provides you with all information and resources to streamline your journey to the next Chapter.
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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