Connect Financial Service Brokers CEO Paul Tynan has said there is a growing pool of potential buyers for advice practices as baby boomers move to retirement. Tynan said many of the buyers are 40-50 years old and are seeking to "buy a job".
“They have been downsized or don’t like the new institutional world, have been transferred out of an area or have decided they want to be their own boss in charge of their future professional [or] career destiny,” Tynan said.
Tynan said he is working with buyers such as companies looking to make strategic acquisitions, financial planning businesses looking to diversify and individual buyers looking to leave corporate careers or transition into self-employment.
With many buyers in the market, Tynan suggested that both buyers and sellers needed to be cautious.
“Prospective buyers of practices need to be patient and not be ‘spooked’ into making inappropriate acquisitions that have the potential to be long term catastrophic financial decisions. Equally sellers must plan their own exit which is a balance between business, health, finance and lifestyle to suit their individual circumstances and then take into account current market conditions and review their valuation expectations accordingly.”
Succession planning is getting trickier as the pool of potential buyers for advice practices grows, it has been claimed.