How to Prepare Client Data for Sale: Guide for Acquiring Advice Firms
By
Nicky Sevel
·
3 minute read
7-step guide to help acquiring advice firms streamline onboarding and to support sellers through the process.
Clean compliant data is key to success platform switching
Whether you're preparing to sell your advice firm - or looking to acquire one - your data can make or break the deal.
For acquiring firms, platform-switching software only works as well as the data you feed it. For selling firms, having clean, structured client data is essential to securing a strong valuation and completing the deal quickly.
In this guide, we cover how advice firms can prepare their data for sale and how acquiring firms can ensure a seamless platform switch with minimal disruption.
- Why Clean Data Increases Acquisition Value
Before any sale, buyers need to understand what they’re purchasing - and that starts with good business metrics.
Financial advice firms preparing for sale should be able to show:
- Historical AUM and revenue (ideally 2+ years)
- Average AUM per client and household
- Precise segmentation of clients (e.g., by value, life stage, service level)
Slicing this data or excluding specific segments (e.g., clients over 80 or those with under £25k in AUM) makes your business easier to analyse and more attractive to buy. For acquiring firms using platform-switching software, it also makes segmentation and migration planning far more manageable.
- Avoid Delays: Be Ready to Extract Data
One of the top causes of delays during advice firm acquisitions is data extraction.
Sellers often underestimate how long it takes - on average, up to 3 months - to compile the datasets needed for early-stage due diligence. For acquiring firms ready to switch platforms and onboard clients, waiting months for usable data can be a dealbreaker.
That’s why sellers should prepare:
- A clear and anonymised client dataset
- Visibility of policy, platform, and revenue data
- Internal workflows for rapid extraction - ideally automated
For acquirers, when used in tandem with switching software, clean data can radically reduce onboarding timescales and ensure a smoother transition.
- It’s More Than Just Back-Office Data
During due diligence, acquirers want a full view of the business - not just CRM data.
Expect to review:
- Anonymised client records (including service level and revenue model)
- Employee contracts and roles
- Advice proposition documentation
- Evidence of client reviews and suitability checks
A firm that has this organised - digitally and accurately - is far easier to assess and onboard onto your platform of choice.
- Don’t Underestimate Data Cleansing
Whether staying on the same back-office system or switching to a new platform, data cleansing is non-negotiable.
It’s not just about removing duplicates. Acquirers should be prepared to:
- Fix missing fields (e.g., DOB, NI numbers, platform IDs)
- Normalise fund and policy data
- Ensure consistency across multiple systems or spreadsheets
This process, done early, ensures your platform switching software can map and migrate clients correctly - and avoids significant delays or errors down the line.
- What If the Selling Firm Has No Back-Office?
Many smaller firms operate without a dedicated back-office system. This doesn't rule them out but makes the sell/purchase more challenging.
Without structured systems:
- Data may be buried in spreadsheets or PDFs
- Client servicing may be inconsistently recorded
- Workflows are more complex to interpret or migrate
Acquirers should plan for additional onboarding time and consider building a pre-migration mini project to standardise key client records before a platform switch begins.
- FCA Scrutiny Is Changing the Game
The FCA’s Consumer Duty has raised the bar on evidencing ongoing servicing and suitability. For acquirers, this means reviewing far more than financials.
Be ready to assess:
- Whether clients are in accumulation or decumulation
- How often reviews are being conducted - and documented
- If servicing levels are clearly defined and recorded
These areas often aren’t accurately tracked in legacy systems. Firms may need additional checks or data cleanse sessions before your platform-switching software can handle the transition.
- Platform Consolidation = Faster Switching
After acquisition, consolidating platforms is one of the fastest ways to reduce costs and improve client outcomes.
However, selling firms often come with a long tail of provider relationships. Acquirers should:
- Review current platform distribution pre-sale
- Identify opportunities for early consolidation to 2–3 core platforms
- Use switching software that supports bulk transfers and pre-loaded pricing models
These checks ensure a smoother integration post-acquisition and give clients access to better pricing via institutional agreements.
Good Data = Good Deals
In M&A, clean data closes deals. Anything less slows them down.
If you're an acquiring firm investing in platform-switching software, ensure the firms you're onboarding are data-ready - or give them the tools to get there.
And if you're preparing your advice firm for sale, don’t wait until you have an offer. The earlier you start cleansing and structuring your data, the better the outcome - for you, your clients, and your buyer.
👋 Need help simplifying platform transfers post-acquisition?
We provide the switching software and services that acquiring advice firms need to streamline onboarding, reduce out-of-market exposure, and stay compliant under Consumer Duty.