When to Tell Clients You're Selling Your IFA Business
23rd October 2026
When you’re selling your business, a great deal for all parties ultimately comes down to finding an acquirer you trust to look after your clients. That said, a crucial part of the process is how and when the changes are communicated to clients. The first impression your clients have of the new company and new advisers will be influenced by how you present the news to them.
When should I tell my clients I am selling the business?
You will usually tell your clients about a sale much closer to completion than to the start of the process.
There are of course exceptions. Some clients might have already asked you what your plan is, and this may have prompted your thinking, or you may want to run the idea by a small number of clients to gauge their view on you stepping back. If you do, it is best to keep it informal until you have more details to share.
Typically, it can be six to twelve months from starting conversations with intermediaries like Chapters to telling clients, and by which point you will be committed to a deal. So as part of your initial due diligence, it is important to really understand how buyers intend to manage client communications.
Why is telling my clients so important
We often refer to a good sale as one that creates outcomes that pass the “supermarket test.” The idea with the supermarket test is that if you were to bump into a former client at your local supermarket post-sale, you wouldn’t be ducking behind the vegetable displays or rushing down the aisles to avoid them. Rather, you’d be delighted to stop and chat, confident they were being looked after every bit as well as before.
We think of telling clients as an extension of the advice you already give them. You’ve gone to the market, set the criteria a firm needs to meet to look after your clients properly, ruled out those that didn’t work, and made the decision on the best firm. You should be able to explain all the factors and reasons for this decision, and why you decided against the other options you reviewed. Your clients have put their trust in you to handle financial affairs on their behalf so this should be no different.
How should I approach telling my clients about selling my IFA?
There are regulatory considerations here, and clients must receive official communications and paperwork, such as letters from you informing them of the sale, and letters from the buyer welcoming them and setting out the change.
Beyond that, you know your clients best. Some will want an in-person meeting, others a lunch, and some will be ok with a phone call or video call. It will be client by client, and it helps to decide up front who gets what: a meeting for your most important relationships, a call for the next group, the letter alone for the rest. Whatever the channel, they should hear it from you before anything lands from the buyer.
In this process it is important to make sure the buyer understands that you intend to be part of the handover, and that they want you to be. Be wary of any firm that wants you gone on day one with no further client contact. An experienced intermediary will check this with buyers early and ensure they are qualified properly, so client communication is built into the deal rather than treated as an afterthought.
What mistakes should I avoid?
Telling all of your clients too early, or without a proper plan, can create unnecessary uncertainty. Beyond gauging their initial view on you stepping back, it is typically better to wait until you’re closer to completion with a particular acquirer. You can then be clear and specific about the firm in question and what it means for them, and also, telling clients too early could leave them confused if the deal falls through during due diligence.
Conclusion
Ultimately, telling your clients about a sale is made much easier by choosing the right buyer in the first place. You will be able to explain clearly why you chose them, why you believe they are the right firm to look after your clients, and what the transition will mean in practical terms.
This is where using a specialist intermediary makes the difference. At Chapters Capital, we help sellers narrow the market down to the buyers that are most likely to suit their business, clients and plans, then manage the process through negotiation and completion. The aim is to help you choose a buyer you feel confident recommending to the clients you have spent years advising.
Considering your next chapter?
At Chapters Capital, we specialise in financial planning and wealth management M&A.
If you own an IFA, financial planning or wealth management firm, we can help you understand the options available to you, from pre-sale planning and selling your firm to retire, through to sell and stay structures and partnership programmes.
For a confidential conversation about valuation, buyer fit or your route to market, contact our team.
📞 +44 (0)204 519 7811 | ✉️ info@chapterscapital.co.uk
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