Speaking to Professional Adviser, The Flower Group founder Gordon Flower labelled deals “a disturbing event for IFA owners and the people involved”. Flower added that the acquisition process has “an emotional toll on everyone involved, particularly those who are being acquired”.

“People are scared of losing their jobs,” Flower explained.

The Flower Group was launched in July 2023 to support the mergers and acquisitions (M&A) process for the wealth management sector. Last month (24 January), it unveiled its M&A support service for the wealth management sector, said to “reduce transaction timelines by an average of six weeks”.

For those looking to acquire businesses, Flower suggested considering “good client data”. “Acquirers like to hear that a business cares about its clients, such as when someone remembers the small things about their clients, rather than viewing their clients as numbers,” he noted. “Listening skills are very important in this space.”

He added: “When you’re looking to acquire a business, you need to think to yourself, ‘Can I see this business fit in with us?'”

Flower noted that many business owners fear losing value during acquisitions. “They ask themselves, ‘Is this going to reduce my value?'” he said.

To alleviate such concerns, The Flower Group helps prepare sellers for the demands of due diligence and supports acquirers with key insights into the cultural and operational dynamics of their targets.

Hoxton Wealth founder and CEO Chris Ball highlighted the importance of understanding whether the human capital within the business will remain post-acquisition.

“Are you buying someone’s book that’s retiring? If so, then it’s important that if they’re saying they’re retiring, they actually retire,” Ball explained. “If they don’t have a real reason for retiring, they may find it too difficult and emotional to leave and could return, which creates challenges.”

He also stressed the importance of evaluating existing employees before completing the acquisition.

“If you’re keeping the human capital, it’s important to meet those people before you buy the business. You want to get a very good feel for them to ensure they align with your culture. Ultimately, you’re acquiring them, so they need to fit within your ethos,” he said.

Ball noted that mismanaging this aspect can lead to a fragmented business. “If you don’t get that bit right and you acquire lots of businesses, you end up with ten or 15 different businesses under one umbrella rather than a single, cohesive business,” he added.

At Hoxton Wealth, Ball said alignment is key. “Everyone is singing from the same hymn sheet. While people may have different thoughts here and there, we all adhere to the same three core values: hard work, no ego, and a growth mindset. When acquiring a company, these values must align from the outset.”

Azets Wealth Management group head of people, M&A, Sylvie Gale-Coudene echoed this sentiment, noting that mergers and acquisitions are as much about people as they are about financials. “A strong cultural fit is often what determines long-term success, which is why both buyers and sellers should focus on alignment beyond just the numbers.”

“For business owners considering a sale, it’s essential to understand who they are selling to and how that organisation will look after their people. Many sellers see their business as their ‘baby’ and want confidence that their team will be supported. The most successful sellers prioritise this – often above financial considerations.”

Catalyst Partners partner Roderic Rennison highlighted the importance of addressing employee concerns during acquisitions. “The sale of an intermediary business brings obvious concerns for employees, whether advisers or support staff. It is both considerate to them and important for the acquirers, who will want to retain them, that careful thought is given to their needs and welfare,” he said.

Formed in 2018 by Rennison and John Chapman, Catalyst Partners works with IFA business owners looking to sell, in addition to those pursuing management buyouts, employee ownership trusts, and reorganisations. Between 2018 and 2022, it was involved in about 35 IFA sales, adding another ten to its tally in 2023, covering close to £3bn of assets.

Rennison outlined three key aspects to consider when acquiring: Communication timing, work arrangements, and salary and terms.

Timing of communication: Employees should be informed once there is reasonable certainty that the deal will proceed, ideally after due diligence but before the transaction is made public. This timing allows for questions to be answered and issues resolved.

Work arrangements: Clear expectations regarding working locations—such as whether employees will work remotely or in an office—need to be agreed upon in advance.

Salary and terms: New salary structures and terms of employment should be communicated and agreed upon well before the transaction is completed. This is particularly crucial for advisers to ensure their continued motivation and commitment.

“In summary, effective communication, achieved via regular dialogue, is a key success factor in any deal,” Rennison added.

Gale-Coudene further stressed that transparency is key. “Selling a business with your eyes wide open – being honest about expectations, cultural shifts, and the reality of operating within a larger organisation – leads to smoother integrations.”

“Selling a business can be difficult for owners who are used to complete autonomy in decision-making. That’s why it’s important for sellers to think ahead and consider what motivates them to go to work, what they want from the next stage of their career, and how they will contribute to success within a larger organisation.”

CIL business services practice partner Tom Stevens told PA that while acquisitions can be unsettling, they should be seen as an opportunity to create long-term value.

“Success hinges on a structured approach – communicating clearly with employees, investing in learning and development, and ensuring HR processes support a smooth transition,” growth consultancy partner Stevens said. “Client relationships must also be actively managed, with clear account oversight and increased engagement to maintain trust.”

Beyond people management, Stevens emphasised the importance of operational efficiencies. “Businesses that invest in technology, streamline operations, and take a data-driven approach to performance will navigate the transition more effectively,” he explained. “When done well, M&A isn’t just about integration – it’s about creating a stronger, more connected business that’s set up for long-term growth.”

Gale-Coudene reinforced this, stating that a well-handled acquisition requires clear, authentic communication to win hearts and minds. “If people feel an acquisition is something being ‘done to them,’ rather than something they are part of, engagement and retention suffer – ultimately weakening the value of the deal.

“Navigating this process successfully isn’t just a science; it’s an art that requires flexibility, understanding, and strong communication.”