Every deal looks different: Why data is the key to seamless M&A in 2026
As M&A activity gathers pace, dealmakers and experts in the field share insights on how to prove your practice’s worth with the right data.
Many financial advice practices have either been through a merger or acquisition or have the concept on their radar for the future, particularly as the profession grows and sustainability becomes a core focus.
Figures from the most recent Adviser Ratings Landscape Report show one in four practices planned for M&A in the next 12 months, while more than 40 per cent of the surveyed profession said they needed to find a successor.
Those familiar with the process through past experience often say it can be both lengthy and stressful, particularly if practices don’t have the right metrics and support mechanisms in place. For example, a potential buyer may heavily discount an offer if they don’t have confidence in the numbers the practice is presenting or worse still, they may pull the deal at the last minute because they can’t easily find the detail they need in due diligence.
At ensombl’s All Licensee PD Day late last year, intelliflo’s Stu Alsop, Guidance Financial Services’ Paul Benson and Coastal Advice Group’s Mitch Ramsbotham explored the topic, with the experts sharing insights on how buyers approach a deal and how quality data can change the M&A experience for the better.
What buyers look for
While conventional wisdom may tell us M&A is a short-term process, the preparation should begin years ahead, with the right data, governance and frameworks to prove to suitors that the business is worth the investment.
As Coastal Advice Group’s Ramsbotham points out, firms are not going to make deals based on ‘gut feel’. Instead, they want hard data that showcases a practice’s current financial position and future potential.
Ramsbotham has had more than 30 M&A conversations over the past five years – as going concern and book of business buyer – and said it’s critical to think about data holistically.
“You’ve got to start with the end in mind.”
As a book of business buyer, Ramsbotham said he assesses the number of clients, age of clients, average fee per client, tenure, segmentation, recurring revenue and ideally services and review schedule.
“For an asset purchase, it’s down to the fundamentals.”
For firms looking to sell, that means having the data front and centre, allowing a potential buyer to quickly size up the business.
As Ramsbotham notes, businesses that cannot put forward the right data face two risks: either not receiving an offer at all or having a protracted sale and not receiving the right price.
Using the tools at your disposal today
As financial advice practices approach M&A, they often think they have to invest in complex analytical tools to showcase the fundamentals, but intelliflo’s Alsop said that’s not the case.
For example, the data Ramsbotham mentioned he uses to assess a book of business can be accessed easily, provided the core data is in the right shape.
Ultimately, setting up a business for M&A comes down to a few components: having quality data today, presenting it the right way and ensuring your business is ready for future opportunities when they emerge.