Ensuring client retention after selling your business: the importance of continuity planning

Imagine this scenario: you’re approaching retirement and looking forward to stepping away from the 9-5 after many years of hard work. You sell your business and plan to put the lump sum towards funding your dream retirement, but because you haven’t developed a comprehensive continuity plan, you begin to lose clients which in turn affects your sale price. It’s a nightmare scenario, but one that could unfortunately become your reality.

As the infamous saying goes “failing to prepare is preparing to fail” and in this case, it couldn’t be more true.

What is a continuity plan?

To put it simply, a continuity plan in business is a document which details the essential roles, processes, strategies and assets that keep the company running. It should include:

• A detailed and clear breakdown of essential processes, operations and staff.

• The process for handovers in leadership and management.

• Contingency plans for unexpected and sudden events which can impact clients, staff or finances.

• A well-defined structure highlighting the decision-makers within the company.

• A plan for client retention during the transition period.

What are the benefits of a continuity plan?

As well as ensuring a smooth handover, a well-thought-out continuity plan also makes your business much more attractive to potential buyers. The presence of a comprehensive continuity plan signals to interested parties that there is less risk of financial instability after the takeover, which means you are more likely to receive better offers and experience a smoother purchase journey without buyer uncertainty.

Client retention: A key aspect of continuity planning

A good continuity plan cannot exist without a strategy for client retention. Clients are the lifeblood of your business and neglecting them during this sensitive period of uncertainty is more than likely going to drive them into a competitor’s arms. To prevent this, there are 3 main strategies you can adopt when transitioning:

1) Rewarding loyalty – Ensure your clients know how much their custom means to you by offering discounts, rewards, or retention bonuses when they continue to do business with you.

2) Be transparent – ensure clients are aware of what is happening and when. Make sure to communicate that they can expect the same great level of service they have become accustomed to. Additionally, you may want to highlight the positive aspects of the new ownership, such as potential improvements or added value.

3) Introduce a new point of contact – let the clients build rapport with another member of staff who isn’t yourself. This is a great way to reduce uncertainty as it reassures them that there’s someone else in the business looking out for their best interests.

Reducing disruption

Another important aspect of reducing client churn during the transitional period is to minimise disruption. To achieve this, you can adopt the following strategies:

Be proactive, not reactive -  try to anticipate the objections and worries your clients may have and figure out how you will address them. For example, if you think your clients will be concerned about a drop in the level of their usual service, implement regular customer feedback sessions to monitor satisfaction and ensure your clients know that you will be continually monitoring and addressing their feedback. By staying one step ahead, your clients will feel secure and confident that their worries have been addressed.

Utilise CRM systems – Use CRM systems effectively by taking detailed notes and logging all client interactions. This practice ensures seamless transitions when team members change, allowing new staff to continue client relationships without disruption. Comprehensive records provide valuable context, helping maintain consistency and service quality. By keeping thorough notes, businesses can track client preferences, concerns, and previous discussions, enabling personalised and efficient service.

Build a comprehensive communications timeline – Ensure clients are informed well in advance about any changes and what to expect. Keeping them in the loop builds trust and reinforces your company’s commitment to transparency and honesty which are both crucial for customer loyalty.  When clients feel valued and well-informed, they are more likely to remain engaged and confident in your services. Proactive updates also prevent misunderstandings and enhance your brand’s reputation.

Own an IFA? Reeves Financial Services can help!

If you own an Independent Financial Advisory (IFA) business and are considering selling to secure your retirement income, Reeves Financial Services is here to help. We understand the intricacies of the financial advice sector and the importance of a successful and smooth exit. At Reeves, we work with you as a strategic partner to preserve your legacy and ensure your clients continue to receive exceptional service. Our acquisition process is designed to make the transition as seamless as possible for your clients, with a commitment to transitioning 100% of them to Reeves and ensuring their long-term retention.

If you’re interested in learning more, book a call here.