What buyers look for in an advice firm
The diligence list, in the order it usually gets worked through, and what each item is really testing.
Recurring income and its quality
Not just the total: the split between ongoing adviser charges and one-offs, the platforms it sits on, and whether the fees are documented in a way that survives a file review.
Client concentration
How much of the income sits with the largest ten clients. High concentration means a small number of conversations can move the value a long way, so it is priced as risk.
Owner dependency
Whether clients have a relationship with the firm or with you personally. This is the single biggest swing factor in a small advice business, and the one owners most consistently underestimate.
Files and permissions
Suitability documentation, the permissions actually held, and the gap between what the firm does and what it is authorised to do.
Past business
Defined-benefit transfers, unregulated investments, complaints history and anything sitting with the Financial Ombudsman Service. Disclose it early; it always surfaces, and surfacing late costs more than the thing itself.
The team
Who stays, on what terms, and whether the firm runs without you in the room.
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