The full process of selling a financial advice firm
- Simon Bourke
- May 21
- 7 min read
21st May 2026
Summary
Deciding to sell your business is a massive decision. You will have spent years, if not decades, working as a financial adviser and running your own practice. Over that time, you will also have built long-standing relationships with clients who have placed their trust in you.
Selling the business involves striking a balance between achieving the best outcome for your clients, your staff, and yourself.
If you are considering what comes next for you and your business, this guide is the best place to start. It explains what the sale process involves from start to finish, from the information buyers will ask for and how to prepare it, through to due diligence and completion.
Table of contents
When to start thinking about a sale
There are many reasons a firm principal might consider a sale. An owner may want to plan for their own retirement, but not have an internal succession plan in place within the business to continue the work they have done with clients. Others may still enjoy working as an adviser but hope to reduce the day-to-day regulatory burden of running the business, rather than fully retire. Some may have a team in place, but are looking to de-risk the business through a partial sale or raise investment to support further growth.
Whatever the reason, a common thread across all kinds of transactions is that early planning and proper preparation will always put sellers in a stronger position to achieve the outcomes they are looking for. The process can take longer than business owners might anticipate, so it is worth understanding the typical sale timeline before making firm plans.
It is common for it to take 6 months to find and agree on a deal, and then another 6 months to complete due diligence and close the transaction. Having enough time to carry this out is essential if you want the best outcome.
If you are wondering where to begin with your preparation, read our full step-by-step guide to preparing to sell a financial planning business.
Define what a successful outcome looks like
Knowing your priorities and non-negotiables is imperative when you start to think about meeting buyers. However, we would not expect you to come to the sale process with all of your objectives fully decided or set in stone.
At Chapters Capital, we often work with prospective sellers to understand potential buyer appetite for their business before they come to market. Understanding what may be possible for your business, the type of deal structure and valuation you could achieve, and what the process is likely to involve can be invaluable when deciding how to approach a sale.
Chapters Capital offers free, no-obligation consultations to financial planning firm owners considering a sale. Book a chat with an associate director here.
Some of the key questions to think about when defining a successful outcome include:
What sort of service do you expect your clients to receive from a new firm?
Who is the right adviser to take on your clients - qualifications, experience?
What are your staff’s short and long-term ambitions?
How long would you want to remain in the business after completion?
Are you looking for a full exit, a phased exit, or an investment to support the next stage of growth?
How much do you need from the sale to meet your personal financial goals?
What are the red lines for you, your clients or your staff?
What would make you walk away from a deal mid-process?
What are the personal and family objectives after a sale?
Choose your intermediary
If you have not already engaged an intermediary at this stage, it is crucial that you do. Regardless of who you use, the worst decision you can make is to try to do it yourself. Almost every deal we have encountered over the years where the seller managed it themselves has resulted in a significant discount from market value and less favourable terms.
An intermediary should take the time to understand your objectives, your business, your clients, your staff and the way you advise before approaching the market. Their role is then to narrow down potential buyers to a focused shortlist of suitable parties, present those options to you, and coordinate a small handful of introductions.
At Chapters Capital, we have relationships with more than 100 acquirers across the UK, from sole adviser firms to large national groups. However, we are firm believers in quality over quantity, and will only introduce you to buyers where we believe there is a strong fit with your business, your clients and your objectives.
To fully understand the role of a business broker or intermediary, how fee structures typically work, and how to choose the right adviser to help you through your sale, read our full article on what makes a good intermediary.
Understand how buyers will assess the business
Understanding how a buyer will approach their assessment of your business is a crucial part of the preparation process. What information will a buyer need to see? How will they want it presented? What are they looking for, and what is likely to increase the value of your business?
Working with a specialist broker like Chapters Capital helps ensure your business is positioned clearly and credibly before it is introduced to buyers.
The preparation stage will usually involve gathering:
· Financial information
· Client data and analysis
· Org chart
· Compliance
· Service offering details
· Technology
· Investment proposition and processes
This information also helps shape your firm’s valuation. Buyers will usually look at the financial performance of the company, the quality and predictability of recurring revenue, the age and profile of the client base, adviser relationships, the cost base, growth potential, and any areas of historic and future risk. A strong valuation depends on how clearly the quality, stability and future value can be evidenced, as well as the degree of alignment with the buyer’s central investment proposition. For example, do you understand the revenue mix and any client concentration? Can you provide evidence of the delivery of historical reviews over many years?
Your personal tax position should also form part of this planning. For more detail on the 2026/27 tax year, including changes to Business Asset Disposal Relief, read our guide to selling your IFA in 2026/27.
The process
With the help of your chosen intermediary, you will typically go through a period of meeting with and qualifying potential buyers.
There is a very specific, proven process we follow from our initial conversation with a potential seller through to the execution of a deal. This covers information gathering and packaging. It involves setting and managing criteria to determine which firms are best for you to speak to. We coordinate communications with them at the right time to ensure the process stays on track and in sync. This gets us from our initial conversation with you to the acceptance of a written offer in the most efficient way possible.
Due diligence
Due diligence in a financial planning firm sale typically has four components. Commercial due diligence involves the buyer examining the client book, revenue profile, adviser relationships and service proposition. Financial due diligence covers the accounts, tax position and financial performance. Legal due diligence addresses contracts, leases, employment arrangements, warranties and indemnities. Finally, compliance or regulatory due diligence covers FCA permissions, complaints history, PI insurance, advice file quality, DB transfer history where relevant, and regulatory correspondence.
During this stage, you will receive more detailed requests for information about the business. Due diligence will mostly be handled by you, the buyer and third-party professionals, such as lawyers and accountants. However, your broker should still be available to offer support throughout the process.
At Chapters Capital, we always remain on hand to answer questions, manage timelines and keep momentum going during the due diligence phase.
For a more in-depth look at due diligence, what can slow deals down, and how to prepare in advance, watch our webinar on exit readiness featuring Sam Ward, Head of M&A at Perspective, and Daniel Bisby, Partner at Schofield Sweeney solicitors.
Legal documents and regulatory steps
The legal documents and regulatory steps involved in a sale will depend on the deal structure. In an asset purchase, the legal work will usually focus on the assets being transferred, client arrangements, contracts, warranties and indemnities, and the practical steps needed to move the business across to the buyer.
In a share purchase, where the buyer is acquiring the company itself, the transaction will require a change in control application to the FCA before completion. The FCA has up to 60 working days to assess a complete change in control notification, excluding any period where further information is requested.
This is the stage where your solicitor will play a central role. They will review and negotiate the legal documents, advise on any risks, and work with the buyer’s legal team to move the transaction towards exchange and completion. The legal process may also involve a disclosure letter, which is used to qualify certain warranties given in the purchase agreement and disclose relevant information to the buyer before completion.
Completion and post-sale transition
Completion is the point at which the legal documents are signed, the agreed consideration is paid in line with the deal terms, and ownership of the business (or the relevant assets) transfers to the buyer.
The exact next steps will depend on whether the transaction is structured as an asset purchase or a share purchase, but there will usually be practical matters to work through around client communications, adviser handovers, staff updates, systems access, provider notifications and any agreed changes to branding or day-to-day operations.
The post-sale transition is often one of the most important parts of the process. Your clients will need to understand what has happened, who will be looking after them, and what, if anything, will change in the way they receive advice and ongoing service. Your own involvement after completion will have been agreed as part of the deal, whether that means a defined handover period, a longer-term advisory role or a wider leadership position within the buyer's business.
Depending on the structure of the transaction, there may also be post-completion requirements around professional indemnity insurance, including run-off cover for historic advice liabilities.
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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