Ep.128 - Bought Out, Pushed Out, or Wheeled Out: Brian Hill on the Reality of Exits
Most financial advisers spend their careers helping clients plan for the future.
Very few apply the same thinking to their own business.
In Episode 128, Brian Hill, founder of Pathfinders and author of Everyone Exits: You’re Either Bought Out, Pushed Out, or Wheeled Out®, lays out a simple truth. Every business owner exits. The only question is whether it happens on your terms.
The Exit Most Advisers Are Not Ready For
One of the clearest themes in this conversation is the gap between confidence and competence.
Advisers are highly competent at financial planning. They understand risk, structure and long-term outcomes. Yet when it comes to selling a business, many are doing it for the first and only time.
That creates a problem.
Selling a financial planning firm is not an extension of advising. It is a different discipline entirely. Legal structure, data preparation, valuation drivers and buyer negotiation all require a level of experience most advisers simply do not have.
The result is predictable. Poor preparation, weak positioning and avoidable value loss.
Why DIY Sales Go Wrong
There is a consistent pattern in the market.
Not all self-managed sales fail. But most failed sales are self-managed.
Advisers tell clients to seek advice, to understand the market and to avoid making major financial decisions alone. Yet when it comes to selling their own business, many do exactly that.
The issue is not intelligence. It is unfamiliarity.
Buyers are professional. They acquire businesses repeatedly. Sellers are often navigating the process once. That imbalance shows up quickly, especially when conversations start informally.
A friendly coffee with a buyer might feel like progress. In reality, it often removes leverage before negotiations even begin.
The Hidden Value Killers Inside Firms
One of the most practical parts of the discussion is around what actually drives valuation.
It is rarely what advisers expect.
A common issue is the long tail of clients. Many firms spend a disproportionate amount of time servicing clients who generate little or no profit. Over time, this drags down margins and reduces overall business value.
In simple terms, firms can find themselves working most of the week without creating meaningful profit, then relying on a small segment of clients to carry the business.
From a buyer’s perspective, this is a clear risk.
Other factors also play a role. Low average fees, complexity in investment propositions and reliance on a single owner all reduce attractiveness. Buyers favour simple, scalable and well structured businesses that can be integrated easily.
Build With the End in Mind
The most effective approach to exit planning mirrors financial planning itself.
Start with the outcome.
What do you want from the exit? A capital sum, a legacy, a transition for clients or something else entirely. Once that is clear, work backwards to understand what needs to change.
This is where timing becomes critical.
Many advisers think about selling five or ten years in advance. That may sound early. In reality, it often is not. Each year represents a limited number of opportunities to improve the business, increase value and reduce risk.
Preparation is not about short term fixes. It is about aligning the business with what buyers are actually willing to pay for.
What Buyers Are Really Looking For
Buyers are not looking for potential. They are looking for clarity and commercial viability.
They want to see clean data, consistent revenue, appropriate pricing and a structure that does not rely on one individual. They want businesses that are easy to understand and easy to integrate.
They also look for opportunity.
If there is clear margin uplift available, that can increase interest. If the business has already optimised pricing and stripped out inefficiencies, the buyer pool may narrow.
Understanding this dynamic is key. Value is not only created by what the business is today, but also by what it could become in the hands of a buyer.
A Market That Is Still Evolving
The financial planning market continues to consolidate. Fewer firms, larger businesses and increasing interest from acquirers.
This creates both opportunity and risk.
For some, it offers a clear route to exit. For others, it raises questions about positioning, independence and long-term strategy.
What is clear is that exits are becoming more structured, more competitive and more commercially driven.
Final Thought
Every adviser will exit their business at some point.
The difference between a strong outcome and a disappointing one often comes down to preparation.
The earlier you start thinking about it, the more options you have.
