Risk practice owners looking to sell their business should do so now before the market is flooded by advisers looking to get out of the industry amid the introduction of the higher education standards, a business broker has said.
Speaking to Risk Adviser, Centurion Market Markers chief executive Chris Wrightson said there is a “high demand” for risk specialist practices with very little supply, making it the perfect time for business owners to sell.
However, Mr Wrightson explained that with the higher education standards set to come in and a high number of business owners looking to exit as a result, advisers should not wait until the last minute if they want to sell.
“You do not want to be selling in the last six months of the education standard implementation because that is when there might be more assets on the market rather than less, and that is going to impact pricing,” Mr Wrightson said.
“Demand is still high at the moment, so pricing is still pretty good,” he added.
Mr Wrightson added that, unlike other industry reforms, the higher education standards will actually see advisers leave the industry.
“The education standards are different. It requires you – if you don’t already have it – to go study, and if you are 60, you don’t want to study for another five years, so you don’t want to have to go do the whole CFP course or get a degree.”
He continued: “I have probably been speaking to half a dozen of those guys at the moment who are preparing information memorandums and they are doing it because now is the time to set up a sale process."