Accounting firms are more proactive on mergers and acquisitions than their financial planning counterparts, Connect Financial Service Brokers CEO Paul Tynan says.

“The financial planning industry is not moving when it comes to mergers and acquisitions,” he told insuranceNEWS.com.au.

“Financial advisers are still stuck with pre-global financial crisis valuations of their books and practices.”

Mr Tynan says advisers hoping to exit the industry now or in the near future must bring their valuation expectations into line with market conditions.

“The activity among owners of financial advisory practices has slowed due to ‘valuation shock’.

“Many are holding on in the vain hope their businesses will return to pre-crisis and Future of Financial Advice values.”

By contrast, accounting firms that face similar questions over revenue streams are looking to amalgamate with fellow practitioners.

With time still on their side, Baby Boomers are being proactive, reviewing their exit options and implementing plans to optimise exit potential.

Mr Tynan says financial advisory practice principals should follow their example.