Financial Planning Sales – A look at the data that tells the story …

Financial Services practice broker, Growth Focus, has compiled qualified data over the last three years looking at the reasons financial services practice well.

“Over the last decade, the reasons for selling a financial planning business have been consistent in their frequency with some notable trends developing in the past three years,” says Steven Fine, managing director of Growth Focus.

“When firms approach us to facilitate the sale of their practice, one of the fundamental aspects we need to understand is their motivation for selling. As a result, we found ourselves with rich data, which tells an interesting story once it’s been collated,” says Mr Fine.

Growth Focus’ main findings paint a picture of an industry where medium and large practices are acquiring, and one-man bands are leaving the industry as a result of increased operational costs.

The data captured other motivations of sellers (both those who completed sales and those who were considering selling) over the last three years. A part of the sales process at Growth Focus is gaining a detailed understanding of vendor motivation to track trends. Growth Focus captures the motivation for selling during the qualifying process with vendors and prospective vendors who are seeking to sell their businesses either in part or full.^[1]