Buyers are swarming around independent financial advisory (IFA) businesses, with eyes for finding new partners or snapping up outright sales, according to a leading British corporate adviser.
Fred Hanson, from London-based IMAS Corporate Advisors, said the impeding implementation of measures laid out in the Retail Distribution Review (RDR) is seeing a lot of companies aim their focus on investing in elevating the standards of their advisers and the qualifications they hold.
He explained that many are looking to do this through buying into established expertise and smaller companies that are seeking greater investment.
“Many are positioning themselves for the environment after the RDR and other acquirers are entirely opportunistic as they see, typically smaller, firms struggling,” Mr Hanson said.
The importance of established client relationships in diverse fields of expertise is also providing impetus behind what Mr Hanson believes will be an imminent surge in the number of IFA transactions taking place. He explained that businesses that are close to their clients and have a honed and specific insight into their needs are very appealing to those that are seeking to diversify the range for products they offer.
Those most in demand are the companies – regardless of their size – that have proved that they are already compliant with the regulations of the RDR, who are likely to see their capital values increase significantly.
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