Gunner & Co., the UK’s leading M&A brokerage for financial planning firms, has found that succession planning is now firmly embedded in business strategy — with 73% of IFA business owners integrating it into their long-term planning. This figure remains consistent with 2024, reinforcing that early succession planning is now standard practice.
The findings come from Gunner & Co.’s fifth annual survey on business owners’ succession planning. Over half (51%) of business owners indicated they are planning to exit within the next two years — a sustained level from last year and a marked increase from 42% in 2023 and 38% in 2022.
Retirement remains the leading driver of succession, increasing to 58%, while the influence of regulatory pressure continues to decline — down to 3%. “Succession planning has become a core part of long-term business strategy, we’re seeing more owners preparing well in advance, which puts them in a much stronger position to achieve the outcomes they want.” said Louise Jeffreys, Managing Director at Gunner & Co.
Business sale remains the most popular succession route at 66%, but continues its downward trend, while management buy-outs are gaining traction, rising to 14%. “The Consumer Duty has enhanced the need for acquisitions to be fully integrated, which doesn’t suit every seller, prompting more to consider internal handovers, which can offer better control over integration.” Jeffreys added.
When it comes to preferred buyers, large regional firms are favoured by 74% of business owners, followed closely by small local businesses. This trend is reflected in vendor priorities. Client proposition alignment remains the top factor in a successful sale, selected by 58% of respondents, followed by price at 53%. Notably, the importance of a shared investment philosophy has nearly doubled, from 18% last year to 33% in 2025.
“We’re seeing a clear shift in what sellers value in a buyer,” said Gwill Evans, Head of Brokerage. “Cultural alignment and long-term client care are front and centre. Deal value still matters, but it is not the only focus. Buyers who can demonstrate similarities in investment philosophy and client experience are standing out.”
Meanwhile, the buyer landscape is shifting. Many PE-backed consolidators that entered the market in 2019 are now nearing the end of their investment cycles. “This will reshape the buyer pool and concentrate deal activity among fewer, larger players,” said Jeffreys. “For sellers, it reinforces the need to act early and understand how the buyer landscape is evolving.”
