An acquirer will want to assess a wide range of management and financial information as part of their due diligence, depending on the type of acquisition. But, at the very least, they will want access to accurate data on your clients.
If you’re considering your next chapter, it’s worth remembering that any potential acquirer isn’t just buying numbers. They may be investing in your people, your culture, and the trust you’ve built with your clients over many years.
Where to start
Start with your client records. Take the time to ensure these are accurate, up to date, and securely stored in line with GDPR and the FCA’s expectations. Strong client files go beyond the basics.
Think suitability reports, clear records of annual reviews, signed agreements, and evidence that you’re delivering on your service promises. When an acquirer sees this level of care, it speaks volumes about how you run your business day to day, as well as reassuring them that those client relationships will be both robust and valued after the deal is done.
Strengthen your financial picture
Your financials deserve the same attention. Prospective acquirers want to understand how your firm earns its keep; details about recurring income, how your clients are segmented, the shape of your pipeline, and a transparent view of costs and profitability.
Make sure your management accounts match your official filings, and take the opportunity to explain any exceptional costs or quirks in your numbers. Demonstrating a fair and compliant approach to fees and adviser remuneration will give buyers the confidence that they’re dealing with a sustainable, well-managed business.
But it’s not all about spreadsheets. Acquirers want to know your practice is resilient.
Share how you keep the business running smoothly, even when things go wrong. Your processes, your compliance checks, and how you look after client data. Depending on the acquisition structure, firms should be ready to show how they’re meeting FCA expectations on cyber security and operational resilience.
People make a business
And finally, don’t forget your team. Be ready to share organisation charts, staff agreements, training plans, and proof of FCA authorisations. Highlighting professional development and a positive culture can really set you apart and show the long-term value your people add.
Prepare for a smooth transaction
In the end, well-prepared, well-presented data ensures the process is smoother for everyone. It makes your business stand out, helps you achieve the best result, and gives you confidence that your clients and team are in safe hands for the future.
In an asset deal, the spotlight is firmly on the quality and transferability of your client book. Buyers want to see that contracts are clearly held by the business and can be reassigned without complication. By ensuring client agreements are watertight and goodwill is properly documented, you can make your business a stronger and safer prospect.