There are an increasing number of national and regional firms growing both organically and through acquisition. Typically, these businesses are smaller than the large consolidators, something which can be an advantage if you’re looking for a more culturally aligned buyer. They may also have full client-facing operations and a brand in your location that is well respected and of comfort to your clients.
Whilst many of those regional players are not vertically integrated, most will have a well-researched and documented Centralised Investment Proposition (CIP). Over time, there will typically be a harmonisation of propositions for compliance and operational purposes.
Furthermore, as national and regional firms grow, more are applying for their own discretionary investment permissions. As a result, they’re harnessing the benefits of vertical integration, particularly in relation to compliance and reductions in administration.
Typically, national and regional firms have deeper pockets than your local peers. They may be more experienced too, having bought businesses like yours in the past. That experience means they should also have the necessary systems and processes in place to ensure a smooth completion and transition.
They may not offer the highest valuations because of restrictions on their own value due to size and scale, but this needs to be balanced against the benefits of selling to a firm more closely aligned to yours.