One of the most difficult challenges for independent advisory businesses is finding and retaining the professionals they need to service a growing client base and perpetuate sustainability. The talent pool is extremely competitive, especially in the financial services industry. The value of a strong team and integrated business is ever increasing, and the number of new advisors coming into the profession is still relatively low. To be successful in building the right team, you’ll need to be strategic in your efforts and focus on the people that best align with your business priorities and your plans for growth.
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Topics:
Compensation,
Organizational Structure,
Business Growth,
Next Generation,
Talent Recruitment,
Sustainability,
Wealth Management,
Business Operations
Purpose, perspective, and premise are the foundations of business value. With these three key aspects we can weigh an incredible amount of detail and data to determine the most accurate value of the business–for any circumstance. The more accurate the value, the better the outcome of your situation, and the better your ability to plan ahead for future growth and higher profits.
Everything starts with “why.” What is the purpose for the valuation? As we like to say, “value is in the eye of the beholder,” and purpose allows us to pinpoint that perspective to know what makes a business valuable to them. And when we drill down into situational specifics and the nuances of perspective, we can understand the future-state of the business and the premise of the valuation to fine tune its accuracy.
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Topics:
Succession Planning,
Business Growth,
Business Value,
Benchmarking,
Valuation & Appraisal
One of the other things that I see a lot more sellers asking for is multi-generational ownership and multi-gender ownership. I encourage my clients to diversify their ownership group as much as possible.
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Topics:
Succession Planning,
Acquisition,
Multi-Generational Ownership,
Buying & Selling,
Open Marketplace,
M&A Playbook
The biggest mistake that I see people make–the single biggest mistake–when they are in pursuit of an offering that we have on the open market, is they position themselves as a great practice, they don't position themselves as a great fit. Really not understanding what fit is and just thinking I can afford this practice and I'm 50 miles from it. And while those things can be important, there are other things that are critical in what fit is and what goes into us finding the perfect fit.
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Topics:
Acquisition,
Buying & Selling,
Open Marketplace,
M&A Playbook
Sparking that next phase of growth might be harder than expected. For firms moving from sole proprietor to a practice, growth may come easy – but only to a certain point. When a plateau hits, where should advisors look to dig in and overcome? Benchmarking, alongside a deep understanding of business growth and value drivers, is where firms can stand apart from the pack.
If you are ready to grow your financial advisory business and wondering, “Why haven’t I grown faster?” this may be the blog post for you.
Read on for our best tips on diagnosing and overcoming growth inhibitors.
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Topics:
Business Growth,
Building Your Team,
Client Relationships,
Business Operations,
Key Insights
Ultimately, I think sellers come to us and they want to know what kind of multiple they can get to their business. And the question is really well-intentioned, what I think would be better for sellers to ask is: How do I position my business to get the most value or to achieve my strategic objective?
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Topics:
Acquisition,
Buying & Selling,
Open Marketplace,
M&A Playbook
Whether you’re buying or selling a business, there are a few players that are “must-haves” on your transaction team: personal lawyer, CPA/Tax professional, representative of your IBD/Custodian, personal stakeholders, and a non-advocate, industry-experienced mediator.
The role of each of these players is important to the overall success of your deal, however, the mediator can sometimes be overlooked–often to the disadvantage of your deal. So, why are they so important?
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Topics:
Selling Your Practice,
Acquisition,
Buying & Selling,
Trends in Transactions Study,
Transactions
How has marketplace strength held on throughout 2023?
We've seen a really strong M&A marketplace in 2023. Demand is still really strong. As we've consistently had at least over the last five years, we've got an inverse in terms of there's a really strong demand and not a whole lot of supply. And that trend has continued in through 2023.
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Topics:
Acquisition,
Buying & Selling,
Open Marketplace,
M&A Playbook
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The value of your practice is determined by many factors, some obvious, and some not so obvious. And the degree to which some aspects impact your value more largely depends on the reason you’re valuing the business in the first place.
Whether you’re considering acquisition, onboarding new talent–or new owners–, monitoring annual growth, or getting ready to sell, these ten factors have the most significant impact on the value of your business. Focus in these areas can make a major difference in your book’s sustainability and its eventual purchase price when transition time arrives.
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Topics:
Business Growth,
Business Value,
Buying & Selling,
Sustainability,
Benchmarking,
Valuation & Appraisal
