Wednesday, 2 November 2016

M&A activity among small IFA firms is set to soar!

Right, dear reader(s), it's the Wednesday morning PR email, from Investec, back by popular demand. 'Wednesday morning, boss?' Yes, Voice, Wednesday morning. Back by popular demand. Christ! You got a problem with that? 'Oh, no.' Good.

M&A activity among small IFA firms is set to increase over the next two years, according to the majority (55%) of advisers polled by Investec Wealth & Investment. Over a third (37%) forecasts a rise in M&A among larger firms too as the industry continues to consolidate at pace. The main driver behind this, according to 42% of respondents, is owners looking to sell their businesses in order to retire or semi-retire. With almost a third (30%) of advisers planning to sell their business entirely on retirement, the research suggests there will be a steady stream of new firms coming on to the market over the coming years.

Brexit, probably. People want to retire and get as far away from the shitshow as they possibly can. I don't blame them. [Cameron obviously saw the "shitshow" in Libya (as Obama put it) and thought to himself: How can I replicate this in the UK?]

According to advisers, the second and third key factors behind the rise in M&A are the role of technology in creating more efficient business models (34%) and the evolving regulatory landscape (33%) respectively. Advisers said the biggest factor influencing their decision on which firm they would sell to is ensuring they would maintain a high level of client service. This was followed by securing the best financial return and the possibility of remaining involved in their firm on a semi-retired basis.

Yeah, robots. My uncle has got a robot dog now that is putting real pets out of work. It's a fucking disgrace!

Mark Stevens, Head of Intermediary Services, Investec Wealth & Investment, said, "M&A in the IFA sector will continue apace over the next few years as advisers belonging to the baby boomer generation will be looking to hang up their boots. When you add the impact of new and more complex regulation and better technology you have an ideal environment for consolidation. In our experience M&A activity inevitably leads businesses to conduct a thorough review of their business operations and this often results in a decision to outsource the investment management process to a reputable specialist with the expertise and scale required to provide a high quality service to an expanded client book."

Okay, okay. Expanded client book. Nice. I get it. I understand. It's all right for some, ain't it?


Anything else? Well, in other Brexit news, Tim Martin, the boss of Wetherspoons, is moaning about "bullying" from EU leaders. 'Ha!' What did he expect, man? They're going to look after their own interests now. And why shouldn't they? 'Maybe they've finally had it with all the abuse, boss, the EU lot.' Yeah, maybe. / I suppose Tim is upset about the rising cost of imported beers and wines. He should have thought of that before. 'At least he's got his sovereignty now.' Ha! Don't make me laugh, Voice. This country belongs to the Queen, the aristocracy, the Establishment. Sovereignty shouldn't mean shit to your Average Joe, but ... I don't know. I'll never understand people. Oh, I never will.