Advice firm owners should only sell their business as a last resort, according to Roderic Rennison, partner at Catalyst Partners.

During the aptly named ‘Are you sure you want to sell your business?’ session at Money Marketing Interactive in London today (8 October), Rennison said those looking at exiting the profession should consider all the other options available to them first.

“Selling your firm should be the final option,” he told delegates.

“Before you consider whether a sale is the best option, have you considered a management buyout (MBO)? Might an employee ownership trust (EOT) be appropriate?

“If you have children or relatives around, would some sort of family succession be appropriate? If not, why not?”

He acknowledged that with an MBO or EOT, “you might be looking at five to 10 years” to complete.

If an advice firm owner still does consider a sale to be the most appropriate option, they were warned that “not all sales are the same”

“Will it be the full sale of all the shares, or 51%? Or do you want to take equity shares in the buyer’s business?” said Rennison.

“There are a number of choices and decisions to make.”

For anyone considering selling, Rennison stressed the importance of having a written plan in place – even if it is just on one sheet of paper.

As well as reviewing this plan regularly to check goals, acquirers like to see a plan “as it is evidence that you have a growth strategy”, he said.

He said some of the things acquirers want to see when looking for a business to buy are a high average AUM per client, assets on a CIP/CRP, assets on a platform, an ongoing adviser fee of around 75bps, a good mix of clients and few DB transfers.

“The first question a buyer will ask if have you done your annual review, and can you evidence it? It wasn’t even a question that was on their lips a year ago,” he added.

Delegates were also warned that “completion of the sale is not the end of the process”.

He said it was good to look at the sales process an an iceberg, with the sale itself the tip and everything else, including integration, underneath the water.

“Failure to integrate properly, he warned, can affect staff morale and is also likely to affect deffered payments.

Duncan Sherlock, principal partner at Foster Denovo, joined Rennison on stage and gave a first hand account of what it was like selling his advice business.

He explained that how he took the business from nothing to £140m assets under advice, before deciding to sell up due to the stress levels involved in running the company.

“I wanted to reduce my stress levels, that was the deciding factor,” he said.

He said he looked at three options before selling, including an MBO, EOT and family succession.

He discounted the latter option when his wife told him and his son that “one of you will die, and I’d rather you didn’t”.

“So we came to the conclusion that selling was the best solution,” he added.

Sherlock said that he had four or five offers for the business before Covid hit.

They eventually completed the sale on December 31, 2023 and he joked “we had quite a good New Year’s Eve last year”.

“But my point is, when you’re embarking on this journey, it is important to remember it is not a quick process.

“When we had the offer you think ‘that is the end of it, it’s over’, but it isn’t. Then you have all the due diligence.”

Sherlock said one of the things he struggled with was wanting to stay employed after the sale.

“I wanted to stay employed because it was important to me I was going to feel safe in the place I put my clients

“You want to be comfortable that when you take your clients to a different firm.

“However, I struggled. I was used to making all the big decisions, and suddenly you are having to accept decisions being made without you.

“If you want to retain control of your business, selling isn’t the right thing for you,” he added.

HERBAL Essences customers are in a lather after the haircare firm shrunk its conditioners by almost a THIRD.

Its Dazzling Shine, Hello Hydration, Daily Detox and Ignite My Colour hair moisturisers have gone from 400ml to 275ml in recent months, but remain at around £2.

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The product is now sold in tubes rather than bottles after the 31% reduction, leaving customers confused and angry about the change.

One, Brian Brennan, fumed on the review site Trustpilot this week: “My wife has always used the shampoo and conditioner, the prices were very good. 

“The shampoo and conditioner were in 400ml bottles. Now they put the conditioner in a 275ml tube container and charge the same price for 125ml less.”

Another added on X: “Why are you no longer selling 400ml bottles of conditioner? Now I can only find 275ml tubes, which means I’ll need to replace them more often – and they’re not that much cheaper!”

A third added: “Just been comparing the old and new Herbal Essences conditioner bottles, and the old one has 400ml, almost half a litre, whereas the new squeezy bottle only has 275ml. 

“That’s more than a quarter of your conditioner being stolen from right under your nose!”

Its equivalent shampoo range continues to be sold in 400ml bottles.

Shrinkflation is when products shrink in size but remain at the same price, meaning shoppers pay the same for less.

It’s a tactic often used by companies to avoid hiking prices, as a change if size is less noticeable.

Susannah Streeter, of investment firm Hargreaves Lansdown, said Herbal Essences’ owner Procter and Gamble (P&G) had been increasing prices month on month, which has put off price-conscious shoppers.

She added: “Attempts to limit the effect of price hikes through promotions and discounts have not been enough to win back loyalty.

“P&G has also been affected by weaker spending in China, even for essential items and it’s also been hit by boycotts of Western brands in the Middle East. 

“So, the company is looking at other ways to keep costs lower and keep its profits ticking up.

“It appears shrinking sizes on some products, rather than hiking prices, is part of the strategy.” 

Procter and Gamble did not comment.

Yesterday The Sun revealed how Cadbury’s family treat bags of chocolates have shrunk down in size.

New packs appearing in recent months have seen the Crunchie axed from the selection, as well as the size reduced from 216g to 207g.

It is the latest chocolatey snack made by the manufacturer to shrink in size.

Cadbury‘s Brunch bar multipacks have also reportedly been reduced in size by a major 12.5%.

Traditionally shoppers were able to bag up a pack of five bars which in total weighed over 160g – or 32g per lunchtime treat.

But now the entire box weighs a whole 20g less with the bars now sitting at 28g each, an investigation by The Grocer has revealed.

The size reduction applies to all the flavours including their raisin, peanut, choc chip and Bournville choc chip choices.

Elsewhere, shoppers have been feeling the crunch after it was revealed that two of Kellog’s four different cereal pack sizes have gone down in weight by 50g.

A box of 720g Kellogg’s Corn Flakes boxes is now 670g and 500g boxes are down to 450g.

But the smaller 670g boxes are being sold at £3.20 in Tesco – the same price as for the larger box when it was sold in May.

Meanwhile, its 450g boxes are £2.19, while the previous 500g boxes were only pennies more at £2.25.

A Kellogg’s spokesman previously told The Sun: “Kellogg’s Corn Flakes are available in four different box sizes to suit different shopper preferences and needs. 

“As the cost of ingredients and production processes increase, it costs us more to make our products than it used to.

“This can impact the recommended retail price. It’s the grocer’s absolute discretion and decision what price to charge shoppers.”

Jars of Dolmio sauce reduced in size but remain the same price

THE latest example of shrinkflation sweeping across the UK has seen family favourite pasta sauce brand Dolmio adjust their packaging.

Their 750g jars are now 675g while 500g jars have been trimmed to 450g.

But despite the ten per cent decrease, the price has stayed put at £3 and £2.50 in supermarkets.

It has left customers unhappy at maker Mars, which advertises it on TV with the slogan, “When’sa your Dolmio day?”.

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One fan told The Sun: “It’s a family jar but now it’s smaller, so I’ve had to reduce the portions on every plate at the table.

“It’s really disappointing that companies try to hide this from their customers by making sneaky packaging changes instead of just being honest.

“In two months the price will go up again and it’s even worse of a deal.”

A Mars spokeswoman confirmed the changes, telling The Sun: “Like everyone, we’ve experienced significant cost increases across our raw materials and operations, something that we are continuing to see.

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“We have been absorbing these rising costs for some time, but the growing pressures we are facing means we needed to take further action.

“While it has been a difficult decision to decrease the weight of our jars, our priority is continuing to provide our great products, without compromising on quality or taste.”

Simplified advice can only be achieved if the Financial Ombudsman Service (FOS) and the Financial Conduct Authority (FCA) work together, according to an industry expert.

Ian McKenna, founder of Financial Technology Research Centre, made the statement today (8 October) at Money Marketing Interactive in London.

The FCA announced proposals to launch a simplified advice model last December to make it easier for firms to provide affordable personal recommendations to those with simpler needs and smaller sums to invest.

McKenna, who was part of a panel discussing the future of advice, said for simplified advice to work, the Ombudsman needs to be part of the process.

However, he queried whether the regulator would be willing to make that decision.

He said: “The reality for simplified advice is the regulator would never bring the Ombudsman along. The argument was always do less, charge more or charge less, but still have the same responsibility at the end.

“This why I’m saying, and you could argue with my response, we don’t need the movement of the [advice/guidance] boundary.”

McKenna added that attempts were made in the past to address the issue of advice gap without much success.

“There’s no example of that happening in the past 20-30 years. Why would it be different now? What worries me is a huge amount of effort will be expended on something that just isn’t economically viable,” he said.

McKenna said the sector needs to tread with caution on the advice/guidance boundary review to avoid the equivalent of PPI in the long-term savings market.

“I think if we just remove the boundary, that’s what we will end up with and that will be devastating to people for long-term confidence.”

Tom Selby, director of policy at AJ Bell, said the advice/guidance boundary review is a test for the Consumer Duty and an opportunity for the regulator to assess how the financial services sector is abiding by the core terms of it.

He said the regulator now has access to huge amounts of data on firms to hold them accountable on their Consumer Duty commitments.

“It’s on them to make sure that firms do ultimately understand their shareholders.

“When they look at the cost benefit analysis of ‘am I going to throw people into an inappropriate product or am I going to follow the Consumer Duty?’

“Besides, if I don’t follow the Consumer Duty, I’m going to end up with a huge fine and a bad reputation.”

A TINY clue on the edge of a £1 coin could make it worth 2500 times its face value.

A coin enthusiast has revealed a crucial detail to watch out for that could earn you some “mega money”.

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Sharing a clip with his 134,600 followers on TikTok, the Coin Collector UK said: “There are a few errors that can be found on your £1 coins.

“The main ones you want to be looking for is the dual dated £1 coin.”

“The main ones you want to be looking for is the dual dated £1 coin.”

The TikToker demonstrated what to look for using a normal £1 coin from 2016.

He continued: “So you can see, when we flip this over on the obverse side this is a 2016 version of the £1 coin.

“However some were made with the micro-lettering on the side with the date 2017.

“It is an extremely rare error.

“We only know of one that’s actually being sold to a buyer in Spain, and this sold for £2,500.”

He advised using a microscope to check for this error as it is “extremely fine”.

He insisted “it’s definitely worth checking” if you have a 2016 dated coin.

Just look on the Queen‘s head side for the micro-lettering and on the reverse side for the date 2017, he added.

Lots of fans jumped to the comment section to share their thoughts.

One said: “Will look out for this.”

While a second person said: “I have 4 of them.”

Meanwhile a third asked: “I got this coin and please tell me where can I sell it.”To which the TikToker replied: “Auction.”

How to spot if your coin is rare

The most valuable and rare coins are usually the ones with low mintage numbers or an error.

A mintage number relates to how many of a certain coin were made, so the lower the number, the rarer and, generally, the more valuable a coin is.

Meanwhile, error coins are pieces that were incorrectly struck during the manufacturing process.

The ultra-rare “lines over face” 50p error coin is one such coin, which has been known to sell for £1,500 in the past.

Meanwhile, others with little-known designs have been known to sell for up to £3,000.

How to sell a rare coin

There are three ways you can sell rare coins – on eBay, Facebook, or in an auction.

If you’re selling on Facebook, there are risks attached.

Some sellers have previously been targeted by scammers who say they want to buy a rare note or coin and ask for money up front to pay for a courier to pick it up.

But the courier is never actually sent and you’re left out of pocket.

Rather than doing this, it’s always best to meet a Facebook seller in person when buying or selling a rare note or coin.

Ensure it’s a public meeting spot that’s in a well-lit area and if you can, avoid using payment links.

Next, you can sell at auction, which is generally the safest option.

You can organise this with The Royal Mint’s Collectors Service.

It has a team of experts who can help you authenticate and value your coin.

You can get in touch via email and a member of the valuation team will get back to you.

You will be charged for the service though – the cost varies depending on the size of your collection.

You can also sell rare coins on eBay.

But always bear in mind, you will only make what the buyer is willing to pay at that time.

Financial advisers are “flip flopping” their approach based on what is being said in the press ahead of the Budget on 30 October, it has been claimed.

Benchmark Capital commercial director Gillian Hepburn made the comment at Money Marketing Interactive in London today (8 October).

She said the issue is that “no one has a crystal ball”, joking that “if I did, I could make a lot of money”.

Hepburn said she spoke to an adviser a few weeks ago who told her that 50% of their clients were taking tax free cash.

However, they subsequently told her that they have now changed their outlook and strategy due to the ongoing speculation around the Budget.

As well as mentioning the implications of politics on advisers, Hepburn also spoke of the regulatory effects on the profession.

She said: “We have seen a real rise in outsourcing from advisers due to Consumer Duty.”

One of the top things she is seeing this year from advisers, she said, is evidencing their value for Consumer Duty.

Hepburn also referenced a whitepaper Benchmark Capital produced with Boring Money, which showed the best way advisers can evidence value according to clients.

The paper identified five key pillars of value with different weightings.

In priority order, these were: trust and peace of mind, planning, information, performance and fees.

Hepburn said she found it interesting that fees came last, adding; “the price might always be our my mind, but not necessarily the clients”.

Benchmark Capital chief executive Ed Dymott recently said he does not want the business to be referred to as a “consolidator”.

He added that, although the firm acquires a business on average every six weeks, the majority are “businesses we already know”.

HOUSEHOLDS should be aware of winter energy bill support worth £5,710 as 10million are set to lose out on a £300 benefit.

Thousands of families are concerned about their finances this winter after Chancellor Rachel Reeves made changes to the Winter Fuel Payment.

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Now, only those on means-tested benefits, such as Pension Credit, are eligible for the cash boost worth up to £300.

This decision will strip 10million pensioners of the tax-free handout which is used to help fuel their homes over the winter.

The move has been met with backlash from a rake of charities and the opposing Conservative Party.

However, Labour has maintained the cuts are necessary to help improve the country’s finances, including a £22bn black hole allegedly left behind by the Tories.

Asked recently how he could justify the cut by GMB star Susanna Reid, Prime Minister Sir Keir Starmer said: “Well, it’s tough and I think the first thing to say and to explain is why we had to do it.

“We inherited a really damaged economy, we did an audit and we discovered an undisclosed £22billion black hole this year, which we have to fix.’

If you fear you may struggle to afford your energy costs this winter you should note some of the other financial help available.

Pension Credit – £3,900 

It is thought around 800,000 are missing out on this benefit which gives you extra money to help with your living costs.

Pension Credit also helps those on a low income with housing costs such as ground rent or service charges.

To meet the criteria for the benefit you must have a weekly income which falls below around £218 if you are single.

If you live with a partner and you are both state pension age then your weekly income must fall below around £350.

This is a separate to your state pension and you can qualify for the scheme even if you have other income, savings or own your own home.

The support also opens up eligibility for social tariffs, the Warm Home Discount, cheaper broadband, free TV licenses, lower water bills and the Winter Fuel Payment.

When applying, you must flag if you are single or living with a partner.

You’ll be eligible if either:

• You and your partner have both reached the State Pension age
• One of you is getting Housing Benefit for people over State Pension age

The benefit acts as a top-up to your weekly income and you could get £218.15 if you are single or £332.95 if you have a partner.

You could get an extra £81.50 a week if you have a disability or claim any of the following:

• Attendance Allowance
• The middle or highest rate from the care component of Disability Living Allowance (DLA)
• the daily living component of Personal Independence Payment (PIP)
• Armed Forces Independence Payment
• The daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate.

You can apply for Pension Credit online, over the phone or by post.

You can start your application up to 4 months before you reach State Pension age.

You can apply any time after you reach State Pension age but your application can only be backdated by 3 months.

This means you can get up to 3 months of Pension Credit in your first payment if you were eligible during that time.

Warm Home Discount – £150

The Warm Home Discount is a one-off discount on your electricity bill.

If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

Applications for the scheme opened this month, but there is a chance you will not receive the payment until March.

To qualify you’ll usually need to be actively claiming one of a number of means-tested benefits during the qualifying week – which is usually in August.

However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date and once it’s confirmed.

If you qualify for the WHD, you should receive a letter telling you. These are usually sent between October and January.

It is also worth noting that there is a separate £150 scheme available to those who live in parked homes.

Applications for the scheme opened on October 2, with the fund operated by charity group Charis Grants.

You can read more about the scheme here.

Household Support Fund (HSF) – up to £500

Struggling families can apply for help through the government’s Household Support Fund (HSF).

The scheme, which is funded by the Department for Work and Pensions, was first launched in 2021.

It was extended for the sixth time in September, giving thousands of families a chance to get the extra support.

The last round of funding ended last month, but applications may still be accepted by some local authorities.

Each area is set to open up the scheme again this October, with the new funding in place until April 2025. 

But it is worth remembering how much you can get depends on whereabouts you live and the money will either be given to you as a direct cash transfer, shopping voucher or in another form.

To find out what you may be eligible for, visit your local council’s website.

If you’re unsure of the name of your council, find out using the Government’s council locator tool.

Funding is given to local councils to distribute, so the amount handed out varies across the country.

But in the past, some families have had up to £500 help.

Energy grants – £100s

Many of the UK’s biggest energy suppliers have grants in place to help support struggling customers. 

But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas previously had an energy grant scheme in place, with the hardest-pressed households receiving a grant of up to £2,000.

The firm also has launched a debt reduction scheme called ‘You Pay: We Pay’.

Struggling customers will also be able to get part of their debts wiped via what’s known as debt matching.

Elsewhere, fellow supplier EDF has a customer support fund which on average wipes £1,250 off customers’ bills. 

It is available to vulnerable customers experiencing hardship. 

To apply you must visit EDF’s website and make sure you have details of your account number (find it on your energy bills or EDF emails) and the current debt balance on all EDF accounts you have.

Check directly with your supplier to see what help is available.

Prepayment meter vouchers and credit – £50

You can get temporary credit from your supplier, but you will have to pay this back.

In many cases, suppliers offer around £10 to £20 if you run out and can’t top up straight away to ensure that you don’t go without heat or lights.

Beware that when you do top-up, this amount will be deducted.

You may also be able to get a fuel voucher through a little-known scheme.

This is a code given to you in a letter, text message or email which you can use to add credit to your gas card or electricity key. 

Exactly how much it is can vary, but in many cases, it’s £49, and you won’t have to pay it back.

If you get a fuel voucher, don’t forget that when you top up, the credit will go towards paying off any debt, for example, emergency credit.

If you haven’t topped up for a period of time, you may also owe standing charges, a daily flat fee for energy use that is separate from your usage.

Contact your local council, food bank or Citizens Advice to find out more.

Free electrics and gadgets – £10s

Octopus Energy is handing out freebies such as electric blankets as part of its Octo Assist fund.

Analysis by the firm shows that customers with electric blankets saw a 20% fall in their gas bill, while only increasing their electricity usage by 0.2% – adding up to an average saving of £150 across winter.

The firm is also handing out free thermal cameras to qualifying customers which can be used to identify where heat is escaping in their home.

Free insulation or boilers – £1,000s

Low-income households may qualify for huge discounts on installing boilers or insulating their homes.

For example, the Energy Company Obligation, set up by the Government, lets households on certain benefits apply to have energy-saving measures installed in their homes.

It might mean cavity wall or loft insulation, or maybe even a new boiler fitted, sometimes for free.

To qualify you usually need to be on one of the following benefits

• Pension Guarantee Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support
• Tax Credits (Child Tax Credits and Working Tax Credits)
• Universal Credit
• Housing Benefit
• Pension Credit Saving Credit

Households’ needs are assessed on a case-by-case basis, so there’s no guarantee you’ll get help, but it is worth looking into.