Over the last couple of years, there has been a sharp rise in M&A deals in the financial advice space both in the UK and internationally.
Rumours suggested that this trend was going to slow down in 2020 due to the covid-19 pandemic, but consolidation is still part of many players’ business plans buying out firms that were either struggling or looking for a succession plan.
Research carried out by International Adviser among 98 advisory firms across the globe proved just that.
Around 63% of those surveyed have entered or will enter an M&A deal: 39% are looking to acquire other businesses and 24% want to be bought.
The remaining 37% of businesses said they had other plans for growth outside of M&A.
More than half (52%) of respondents were based in the UK, followed by Europe (18%), Asia (15%), South Africa (13%), Middle East (9%); and from New Zealand, US and Turkey (3%).
Social media
The research also found that the vast majority of firms now use social media as part of their marketing strategy.
LinkedIn leads the way with 84% finding the platform as either vital, important or useful.
Facebook appears to be another strategic marketing channel for advice companies, with 52% responding positively to its use for business purposes.
The lowest scoring ones were Twitter, with a 50-50 split, and Instagram which is seen as a useful tool only by 27% of advisers.
Investor behaviour
IA also asked advisers around the world how their customers reacted to the pandemic.
Our research showed that most advised clients (38%) stayed put and waited out the storm during the hardest months of last year.
Around 37% of advisers reported that their clients increased their investing during the pandemic, and a further 11% said they had significantly increased it.
Only 27% reported that their clients had either pulled some or a lot of money from the market, or decreased their investing.
