Selling your practice deserves the same level of planning, diligence, and professionalism that you’ve offered your clients for years. If you’re preparing to exit, here’s what you need to consider.
As the financial intermediary industry matures, more advisers and brokers are beginning to consider their next chapter, and for many, that means selling their practice. Whether it’s driven by retirement, down-scaling, or a desire to unlock value after years of building client relationships, selling a practice is a once-in-a-career event. Yet, too often, advisers approach this transition without the planning or structure it deserves.
Clean financials: Run it like you’re going to sell it
One of the most common oversights is the way many practices are run from a financial perspective. It’s not unusual for advisers to treat their businesses as lifestyle assets, running personal vehicles, household expenses, or travel through the company. While this might serve a purpose, it can be detrimental when it comes to a valuation. Buyers are looking for sustainable, transferable profit. If your business generates decent revenue but shows only a fraction of that in net income due to inflated expense lines, the perceived value drops. A clean, well-prepared set of financials, ideally reflecting normalised earnings without personal expenses, is crucial. Ideally, this kind of preparation should begin at least one to two years before going to market.
Think beyond the obvious buyers
Beyond the books, one of the most strategic decisions you’ll make is choosing who to sell to. Many advisers instinctively consider a familiar colleague, a competitor, or a large institution as the most viable acquirer. But while those options have their merits, they aren’t the only ones. Today’s market includes a range of buyers: ambitious younger professionals seeking growth opportunities, independent firms looking to scale, or even platform-linked acquirers who see distribution as their next frontier. Broadening your lens and considering a wider pool of buyers not only increases the chances of a successful sale but can also help surface more favourable terms, better cultural alignment, and a higher price.
Deal structure is as important as the price
Speaking of terms, the structure of the transaction matters just as much as the purchase price itself. Some sellers fixate on the headline number and overlook the payment schedule, performance conditions, or post-sale obligations. It’s common to see deals structured with a mix of upfront payments and deferred amounts linked to client retention or business performance. Others may involve earn-outs, revenue share, or transitional roles for the seller. Whatever the case, make sure the mechanics of the deal align with your personal and financial needs, and that risks are clearly understood. It’s also essential to work with relevant professionals regarding advisory, legal and tax to ensure a holistic understanding of the implications of the deal structure.
Define and protect what matters to you
Beyond the transactional considerations, advisers should take time to reflect on what they need from an exit emotionally and practically. You may want to stay on for a handover period, protect your staff, preserve your brand, or simply retain your mobile number. These may seem minor, but they can have a lasting impact on your satisfaction with the deal. These requirements should be put on the table early in negotiations, and wherever possible, built into the formal agreement.
Your clients are part of the legacy
Client care is another critical area that can’t be neglected. The clients you’ve served for years, often decades, are more than just revenue and account or policy numbers. A sale should ensure they are transitioned with care, that service models are aligned where possible, and that the acquiring party shares your commitment to quality and trust. Client attrition post-sale not only affects the acquirer’s success but can also trigger clawbacks or underperformance in deals that are partially contingent. Ensuring a thoughtful, phased transition and clear communication plan can go a long way in preserving both value and reputation.
Negotiation is a skill – get help if you need it
Finally, there’s the art – and science – of negotiation. Many advisers are seasoned negotiators when it comes to investment products or insurance premiums, but negotiating the sale of a business is something else entirely. Emotions often run high, and it can be difficult to remain objective. Understanding how to position your business, when to push, and when to hold firm can make a significant difference to the outcome. Engaging a sell-side advisor or transaction consultant can bring much-needed clarity and leverage to the table.
Selling your practice isn’t something you do twice. With the right support and preparation, a clear understanding of your goals, and a well-matched acquirer, your exit can be more than just a transaction, it can be a legacy-defining moment.