Buying a financial advice firm: what to look for
For founder-led advice and wealth firms buying in their sector: the UK IFA market, client-bank transfer, FCA change in control and finding owners open to sell.
This page is for owners of founder-led financial advice and wealth management firms, usually with £5m to £100m turnover, who want to grow by buying other firms. You might want clients in a new region, a team of advisers, a discretionary investment capability, or the scale to spread compliance and technology costs.
We help you find the right firms to buy, including ones not for sale, approach their owners in confidence and keep the deal moving. Regulatory review sits with a qualified regulatory adviser, alongside your lawyers and accountants.
What is happening in UK advice M&A?
The market is consolidating. The FCA's 2026 survey of more than 4,100 advice firms found a 15% fall in the number of authorised advice firms since 2021, while adviser numbers have stayed broadly steady at around 31,000 since 2023. The FCA says this "points to consolidation across the market rather than a reduction in advice provision". Large firms now hold around half of all assets under advice (FCA, April 2026).
Deal numbers tell the same story. Heligan Corporate Finance counted around 50 UK IFA deals in 2020, more than 115 in 2022 and a new peak of 133 in 2025. It describes the market as still highly fragmented, with thousands of owner-managed firms, and notes a growing role for well-capitalised buyers, especially private equity-backed consolidators (Heligan, reported by Professional Adviser, May 2026).
For a founder-led buyer, two things follow. There are many smaller firms whose owners will sell in the next few years. And you are competing with buyers who approach them often. Getting there first, in confidence, matters.
Why do advice firms buy other advice firms?
- Clients and recurring fees. Buying a client bank is faster than winning the same clients one by one.
- Advisers. Qualified, experienced advisers are scarce. An acquisition brings them with their clients.
- Owner succession. Many owners of small firms want an exit that looks after their clients. A like-minded buyer can be that answer.
- Investment capability. Buying a discretionary fund manager (a firm that manages client portfolios day to day) can keep more of the value chain in-house.
- Scale. Compliance, technology and professional indemnity costs are easier to carry across a larger firm.
What makes an advice firm different to assess?
A general due diligence checklist covers the basics. These points matter most here.
| Area | What to check |
|---|---|
| Client suitability | File reviews on a sample of clients: whether advice was suitable and properly recorded. Past advice on defined benefit pension transfers and other higher-risk areas. |
| Client-bank transfer | How clients will move: buying the company, or clients agreeing to transfer. Client age, how many deal only with the selling adviser, and how they will be introduced to you. |
| Adviser retention | Who the advisers are, what keeps them, their contracts and covenants, and what the owner will do after completion. |
| Recurring revenue quality | Ongoing advice fees against initial fees. Whether ongoing fees match a service actually delivered. Platform and product dependence. |
| Complaints and liability | Complaints log, Financial Ombudsman cases, professional indemnity claims and cover, and run-off arrangements. Past advice can create liability long after it was given. |
| Permissions and change in control | The target's FCA permissions, any restrictions, and FCA change in control approval, which is generally needed before completion. Timing and process should be confirmed by a regulatory adviser. |
Client transfer and past advice are where buyers most often get caught out. A client bank that looks strong on paper may sit almost entirely with one adviser approaching retirement. A firm with a clean complaints log may still carry advice risk in its files. Check both before you agree the price and main terms in writing, and build regulatory approval into your timetable from the start.
How does finding advice firms to buy work?
Owners of advice firms are approached often, so a standard letter gets little response. What works better:
- Define what you want and why. Region, size, client type, advice model, investment approach and the minimum share of ongoing fees. This is your acquisition thesis.
- Research properly. The FCA register, filings and websites show permissions, advisers and how a firm presents itself.
- Approach in confidence, firm to firm. Explain why their clients and advisers would fit, and how you advise. Owners care about where their clients go.
- Qualify before you meet. Confirm interest, rough fit and any obvious regulatory or client concerns.
Who does what on an advice firm acquisition?
In a previous role, Michael Ferguson led a £6m off-market acquisition of a discretionary fund management business for a wealth management group. It completed in seven months. The business was not on the market when it was first approached. Anonymised details are on our case studies page.
- You: the decision, client and adviser relationships and the integration plan.
- Acquisitiv: the search, owner approaches, qualification and deal management.
- Your regulatory adviser: file reviews, permissions and the FCA change in control application.
- Your accountants: recurring fee quality, real profit and working capital.
- Your lawyers: deal structure, client transfer, covenants, liabilities and the sale agreement.
How can Acquisitiv help?
Acquisitiv Target 45 researches 100 firms that fit your criteria, agrees the list with you, approaches the owners in confidence and makes 5 introductions to owners open to a confidential conversation about a sale. If we are short at day 45, we keep going at no extra fee. It does not promise a completed deal.
If you plan several acquisitions, the Acquisitiv Expansion Partnership runs your search, pipeline and live deals month after month, coordinating your lawyers, accountants and regulatory adviser.
Where to start
If you are weighing up an acquisition, or an owner has already said they might sell, book an Expansion Briefing: a 30-minute call with us, followed by a short written summary and a recommended next step.
Questions buyers ask
Do I need FCA approval to buy an advice firm?
Buying or increasing control of an FCA-authorised firm generally needs FCA approval before the deal completes, and completing without it is a criminal offence, according to the FCA. Some firms are exempt. Whether and how it applies to your deal, and how long it will take, should be confirmed by a qualified regulatory adviser.
Should I buy the company or just the client bank?
Buying the company brings its history, including any liability for past advice. Buying the client bank (the clients and their recurring fees) can leave more of that behind, but each client has to agree to move, and some will not. Your lawyers and regulatory adviser should help you decide which route suits the target.
How do I compete with private equity-backed consolidators?
Heligan reports a growing role for well-capitalised buyers, including private equity-backed consolidators. Many owners still want their clients and advisers to go to a firm that advises the way they do. Reaching them first, in confidence, and showing how you will look after clients often counts as much as price.
Has Acquisitiv done a deal in this sector?
Michael Ferguson led a £6m off-market acquisition of a discretionary fund management business for a wealth management group in a previous role, completed in seven months. Details are anonymised on our case studies page.
Last reviewed 16 October 2026 by Michael Ferguson.
Want owners at your table in 45 days?
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