M&A expert Giles Dunning , a partner at law firm Stephens Scown LLP, says Financial Planning firms can still achieve good valuation but much has changed pre and post-pandemic.
He writes: ”During the pandemic we’ve seen a downturn in the number of deals but many planners will still want to consider divesting themselves of their firm.
“So, despite the ongoing pressures from Covid-19, is it time to press the reset button? Although the pandemic is far from over, many planners are operating effectively from home and have transitioned their businesses.
“Certainly, compared to other sectors, financial services is in a fortunate position and buyers are still ready to acquire planning firms.”
He says despite the huge turbulence over the past year the market drivers for M&A are “fundamentally unchanged.”
Vendors are typically those with retirement in their sights or they may simply want to re-focus on advising clients and step away from the burden of running a firm.
Some are also finding that the costs and regulation involved in running a smaller independent firm may be too high.
Mr Dunning looks at the options for sale, valuations, key steps in the buying process, types of sale, deferred payments, due diligence, warranties and indemnities and dealing with employees.
The full article is in the latest issue of Financial Planning Today magazine and you can view an exclusive preview here: https://bit.ly/2ZdVXWz
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