Leveraging the FPT Open-Market Advantage

Posted by FP Transitions on Aug 31, 2021 1:34:12 PM

When it's time to sell your financial advisory practice, knowing the value of your business is just as important as finding the right buyer. But as you begin exploring your options, determining who will be the right buyer to take over your business often takes center stage. The FP Transitions® Open Market will not only locate a new owner who is a good fit for your clients and investment style, but also help you obtain the most value from the sale.


Benefits of the FP Transitions Open Market

Tapping into an open marketplace has benefits for both buyers and sellers. Buyers have access to a larger pool of acquisition opportunities with the potential to meet their strategic goals. This includes those outside of their already established network and area, allowing them to expand their reach. And sellers gain access to a large number of qualified buyers in order to find the best possible buyer for their business.

Self-sourced transactions have the potential to produce reasonable offers for a business, but they're rarely going to be the best offers. While sellers may receive unsolicited offers or inquiries from a friend expressing interest, we encourage you to cast a wider net for your buyer search.

Expand your pool of potential buyers with FP Transitions’ Open Market to realize your asking price (or higher). Our average open-market buyer-to-seller ratio is 75:1.

With a network of over 30,000 advisors nationwide, you won't just find more interested buyers, you'll find more qualified buyers. Many advisors in our network have put in the work to strengthen their acquisition prospect. By working with our membership and consulting teams to continually improve their own structure and value they’ve created sustainability and business longevity–leaving your clients in good hands.

FP Transitions' Open Market in 2020 and 2021

While 2020 was filled with financial uncertainty for many businesses, it didn't prevent some advisors from reaching or exceeding expected gains from their company's sale. In 2020, businesses that found their buyer through the FP Transitions Open Market, on average, received a 15.75% higher price than those that self-sourced their buyer.

In the first two quarters of 2021, this activity has held yielding prices at an average of 16.76% higher than self-sourced transactions and and average of 16.73% higher than their market-based valuation assessments.

Failing to ask the right questions or not understanding all your options can lead you to accept a below-value offer.

2021 (Q1-2) FPT Advantage

The FP Transitions Advantage

When you list your business on FP Transitions Open Market, you benefit from industry-specific expertise offered by our Mergers & Acquisitions team. We start every Open Market engagement with a professional valuation, which provides an appropriate expectation of value and price for your business from the beginning. You'll receive customized support and expert guidance every step of the way.

With 20 years of experience and proven results, buyers trust our process.

Most people wouldn't dream of selling their house without the help of a broker. Why would selling a business with significantly more value be any different?

Whether you've only recently considered selling your business or spent months searching for a buyer through self-sourcing, don't risk leaving money on the table. Call us at 800.934.3303 or schedule a time to speak with one of our experts. We're ready to help you determine your business' value and start the buyer search.

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Topics: Selling Your Practice, Acquisition, Business Value, Buying & Selling