Nearly a third of financial advisers (30%) want to sell their firms, according to a survey.

Higher costs, the regulatory burden and a desire to realise the value of a business are prompting many hundreds of advisers to look at exit via a sale.

The survey of 80 advisers was carried out by Financial Planner and consolidator AFH Wealth Management and suggests that many advisers are mulling selling their firms.

AFH Wealth Management commissioned its first white paper - 'Acquisitions in the IFA sector: Examining a consolidating industry' - to assess the world of IFA acquisitions.

According to AFH's study, carried out by an independent research company, one in three advisers are planning to sell or “exploring options to sell” and two in three believe regulatory change will nudge more advisers to sell up.

Key findings from the survey:

• Nearly one third of IFAs (30%) are planning to / exploring sale options 
• Two-thirds (66%) believe recent regulatory changes will prompt more advisers to sell within five years
• 40% believe rising operational costs are driving consolidation in the IFA sector
• 81% see consolidation as a positive or necessary evolution within the industry
• Only 16% think selling will negatively impact clients

The survey was conducted by Goodman Lantern, which sought the views of IFA owners, management teams and senior advisers.

The survey found that although there is broad support for consolidation, 96% of IFAs have concerns over selling their company, with concerns focused on staff retention and wellbeing.

The survey also found that some 48% of respondents have no formal succession plan in place.

For those looking to sell ‘cultural fit’ with an acquiring firm was seen as very important with 98% stating that cultural fit was very or somewhat important.

AFH Wealth Management CEO Alan Hudson said: “With a significant number of advisers considering succession or sale, it’s clear that cultural alignment, client care, and staff wellbeing must be front and centre in any acquisition strategy.”

The White Paper also includes lessons from AFH’s 20 years of experience in acquiring IFA firms and a look at future trends.

AFH was founded in 1990 by Chartered Financial Planner and CEO Alan Hudson, in Worcestershire. It has more than 200 advisers supported by 500 employees working in 10 offices across the UK. It manages £9bn of clients’ assets (under management and influence) combined for AFH Financial Group companies, as of March 2025.

• 'Acquisitions in the IFA sector: Examining a consolidating industry’ here: https://www.afhwm.co.uk/acquisitions/white-paper/