Advisers not sitting on gold mines
Aaron Klee said there were growing numbers of advisers who had decided that they wanted to retire – but it was not because they wanted to cash in on the value of their businesses.
“The maths on the exit strategy doesn’t work if you are looking to sell to make a profit. Normally it’s for non-financial means that they are looking to exit,” he said.
It has been suggested that more advisers may look to sell up and move on if they are nearing retirement and facing new, stricter rules under the new version of the Financial Advisers Act.
But Klee said, if an advice business would only sell for two times its annual revenue, many advisers would decide it was a better bet to stay at work longer.
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