Selling your financial services business (And how to embrace the change & get a life)

Preparation and planning for selling your financial services business is a terrifying prospect. There are so many things to consider, and it’s always best to arm yourself with a clear plan before emotion or doubt starts to take over.

The Emotional Rollercoaster of Selling a Business

When we talk to business owners who are looking to take the plunge and sell up, there’s one key thing that we always discuss. What’s going to happen on that first Monday when the deal is done?

A business owner is a person – and people feel. When embarking on this journey, we shouldn’t underestimate how emotionally challenging it can be. Financial advisors are used to being busy, being sociable, and changing people’s lives through rewarding work, so what happens when that stops? It’s a good idea to start planning for this as early as possible.

Anyone working in personal financial services has spent significant time building rapport with clients to gain their trust and earn their business. As someone who has chosen to create these relationships, it can be tough to feel like you’re leaving them behind when selling up. It’s vital to try and approach the sale of the business as a business owner, not a financial advisor.

Planning to Sell Your Business

If you storm into selling your financial services business without a plan in place, it’s very likely that your emotions (or even your ego) can take over, and this damages the deal before it’s even begun to form.

Here are some of the key considerations you need to plan for when it comes to selling your financial services business.

Who Else Is Involved In The Sale?

Your financial services business does not work with you alone. You have clients to consider, perhaps you have staff or partnerships agreed upon. All of these people will see an impact when you sell, so it’s important that they’re involved in the process.

Not only will it benefit them, but it can help you. Having a team in your corner relieves some of the stress and emotional complications that can come from selling a business and moving onto a new stage in your life. Having a support network for this journey is crucial to achieving your desired result.

Build A Wish List For The Sale Of Your Business

To prevent knee-jerk reactions or forgotten essentials, it’s always important to have a plan.

When you are selling your financial services business,  whether it’s with the help of an expert or alone, you will likely have many meetings with potential buyers who all have different things to offer, so make a wish list.

Task: Come up with a wish list for the sale and categorise your wishes into 3 main categories.

• Non-Negotiables
• Essentials
• Desirables

Creating this list will not only ensure you enter every meeting with a potential buyer with a good idea of what you’re looking for, but it helps you to wrap your head around what you prioritise as a business owner and that can make it easier to plan for what happens when the deal is finally done.

Once you have your wishes, speak to the support network that you have developed and ask them what their wishes are. The chances of a buyer for your business ticking every single box are incredibly slim, but it helps you to realise what is most important.

Understand The Buyer’s Purpose

How do you know that the buyer’s vision for the business lines up with yours? For many financial service business owners, ensuring that clients and your team are left in good hands is very important when it comes to selling the business.

When you are preparing your business for sale, you can choose to get professional advice or go it alone. Whichever path you choose, you will need to find a potential buyer whose vision for the future, reason for acquisition, client management and approach to personnel works for your business, otherwise, you will find it very difficult to let go.

Open and honest conversations with buyers will go a long way and your wishlist will help to find a potential buyer for your business that works for all parties involved.

What Happens When You’ve Sold Up?

Let’s go back to looking at what happens on that first Monday. As a business owner, you are consumed by your work. You do long hours, you work hard, and you eat, sleep and breathe your business and your clients – so what happens when that’s gone?

For most people selling their financial services business, this is the biggest thing. What are you going to do that is fulfilling, joyful, and makes the sale worthwhile?

Perhaps you will have a transition period where you work part-time to help the business adapt to the change, that would give you more time to adapt, but it might not suit whatever selling or retirement plans you have.

There’s something you can try to help you envision what life might look like after you’ve sold and moved on, and it’s called finding the future you. Pick a point in your life, an activity you love and a place you enjoy – something that makes you think “this life is perfect” and write it down.

There will come a point in the sale where you start having doubts. You will have fears that you are abandoning clients or ditching your team and it can cause sales to collapse. Having something outside of your financial service business that you can look at and be sure you want and that you will enjoy is vital to helping you process the sale and move on.

Time To Get A Life

When the deal is done, it’s time to get a life (and enjoy it). You have put everything into your business and with help have found a way to sell it in the best possible circumstances for yourself, the business and your clients. You have done everything you need to do and now it’s time to reap the rewards of your hard work.

For help preparing your business for sale, contact our team at enquiries@standardsinternational.co.uk.