Close to one in five (16%) said they expect to exit in the next two years, according to the survey by M&G Wealth.

Over two thirds (67%) said their preferred exit route would be to sell to a privately-owned business.

One in five (18%) would opt for an internal management buyout, 9% for an external sale to a private equity/venture capital owned firm, and 6% for an internal sale through an employee ownership trust.

Over half (53%) of advisers said there were still a couple of areas to improve before their business is future-proofed for imminent sale, while a third (34%) said they still had work to do.

Campbell Stanners, business development director at M&G Wealth Advice, said: “Given the demographic of advisers in the UK, it’s not surprising that around half of those we asked are looking to exit the industry in the next five years. It's clear there is a collective need to onboard a younger adviser population to service both existing and growing client demand.

“For advisers seeking to retire, investing time to understand the various exit options is vital. A good deal is more than looking at multiples – culture needs to come before cash. 

“Good data is key. The work that advisers will have been doing to prepare for Consumer Duty, in terms of better understanding client segmentation, service and fees will be hugely beneficial here.

“In an industry, where personal relationships are so important, careful planning and getting the right fit for any business, no matter which route is chosen, will help to ensure the deal is financially beneficial for everyone involved.”

• M&G Wealth and The Exit Partnership surveyed 150 advisers during a webinar in April.