AFH Wealth Management has announced the release of its first white paper dedicated to Independent Financial Adviser (IFA) acquisitions, a comprehensive study revealing that almost a third of advisers are currently contemplating a sale of their business.
The white paper, produced in collaboration with Goodman Lantern, is based on an independent nationwide survey that gathered views from IFA firm owners, executives and senior advisers across the UK.
Highlights from the research include:
- 30% of IFAs are planning or investigating a sale.
- 66% expect regulatory changes to trigger a rise in sales over the next five years.
- 40% see mounting operational expenses as the key reason behind market consolidation.
- 81% regard consolidation as beneficial or necessary for the sector’s growth.
- Just 16% think a sale would have negative effects on their clients.
The findings also reveal that 96% of respondents have some level of concern about selling—mainly linked to staff wellbeing and retention—while nearly half (48%) do not have a formal succession plan in place.
The report further identifies cultural alignment as central to successful acquisitions, with 98% of IFAs stating it is either very or somewhat important.
AFH Wealth Management CEO Alan Hudson said: “This white paper offers a timely and important snapshot of the IFA landscape. With a significant number of advisers considering succession or sale, it’s clear that cultural alignment, client care, and staff wellbeing must be front and centre in any acquisition strategy. At AFH, we’re committed to ensuring that consolidation benefits everyone involved – from advisers and their teams to the clients they serve. I hope that this paper gives advisers some food for thought when considering their future.”
Alongside a deep dive into market consolidation, the white paper also explores how sustainable business growth and succession planning align with acquisition strategies.
Drawing from more than 20 years of acquisition experience, AFH shares practical lessons and perspectives from Alan Hudson and Commercial Acquisitions Director David James, concluding with predictions for what lies ahead in the IFA sector.
The full report, ‘Acquisitions in the IFA Sector: Examining a Consolidating Industry’, can be downloaded from www.afhwm.co.uk/acquisitions/white-paper/.
