.png?width=632&name=Blog%20Header%20Image%20(6).png)
Despite the continued surge of wealth management M&A activity, one surprising fact remains: most of these market participants are engaging in a transaction for the very first time. While there are aggregators and larger RIAs that will continue to build up their business through strategic acquisitions, the majority of today’s deals spark from a mutual attraction either from aligned competencies, or complementary competencies, that allow both firms to amplify their growth and sustainability.
According to James Fisher, Vice President of Mergers and Acquisitions at FP Transitions, “Many practices are looking to be acquired or merge with a larger business to spur growth, to benefit from economies of scale, to offload compliance and day-to-day operations, to increase bandwidth and offerings to clients, or to assist with the retirement of one or more senior owners/partners, among other reasons.”
Regardless of experience, it takes a lot of patience, communication, time, and expertise to navigate the entire deal process. For firms going through this, on any side of the table, negotiating and documenting the transaction can often be more time consuming than anyone anticipated, creating the perfect environment for an all-to-common problem: deal fatigue.
Read More
Topics:
Selling Your Practice,
Acquisition,
M&A,
Business Value,
Deal Structure,
Buying & Selling,
Mergers
.png?width=1200&name=Blog%20Header%20Image%20(4).png)
We just got back from Fort Lauderdale where we spoke at the WealthStack RIAEdge conference for WealthManagement.com. James Fisher, FP Transitions’ Vice President of M&A spoke with several advisors onsite. We wanted to take some of the questions that we received and see if we could answer them for our broader client base.
Read More
Topics:
Selling Your Practice,
Commentary,
M&A,
Business Value,
Buying & Selling
"Think about those future goals."
"Hold steady and don't react to the market."
"Remember, we have a plan and it's still well on track."
Throughout the market roller coaster of the Pandemic and now with 2022 rearing its head, advisors are getting used to coaching clients through market volatility. What matters most in these scenarios are two things: first, a trusted relationship between advisor and client, and second, preparation and education to navigate these emerging challenges.
Read More
Topics:
Succession Planning,
Selling Your Practice,
Business Value,
Sustainability,
Trends
.png?width=1200&name=Blog%20Header%20Image%20(1).png)
Designing a sustainable firm is something that requires intentionality. For most advisors, this is always the goal, but having time to monitor your progress and course-correct is simply overwhelming. It gets shelved in the back of our brains, and its not until something unexpected crops up when we realize its time to revisit our goals.
Read More
Topics:
Continuity Planning,
Organizational Structure,
Entity Structure,
Sustainability,
Business Operations
Our summary of the independent advisory M&A market, including a look at real transaction data, context to help advisors understand what's driving the data, and an unbiased look at what's really going on out there.
Read More
Topics:
Commentary,
FP Transitions,
M&A,
Trends
Business growth is a never-ending, and ever-changing objective of all business owners; financial planners included. While the lingering social effects of the pandemic and the challenges of upscaling during the Great Resignation/ Reshuffle can make the task-at-hand seem insurmountable, there are still tangible ways that you can steer the course of your enterprise. Here are a few tips to help grow your financial planning business.
1. Invest in Human Capital
Most advisors have built their business from nothing into their single most valuable asset. Finding talent can be a challenge these days, especially with unemployment settling into lows not seen in over 50 years. Data from FP Transition's Valuation Database has indicated that businesses with multiple professionals accumulate assets at a higher rate than sole practitioners. As your business matures, it is imperative to invest in the next generation of talent, to keep the engine running while you begin to enjoy the reward for what you’ve built.
Read More
Topics:
Acquisition,
Multi-Generational Ownership,
Business Growth,
Tip of the Week,
Revenue Strength,
Enterprise Strength,
Business Value,
Buying & Selling,
Next Generation,
Talent Recruitment,
Building Your Team,
Client Trust,
Business Operations,
Trends
Succession planning is a critical, foundational element in building a sustainable business. Incorporating new talent into your ownership structure is a process that takes continuous planning, evolution, and monitoring. When done correctly, succession planning ensures incredible employee culture, firm growth, and enduring business value. When the brunt of the planning is complete and documented with the help of partners like FP Transitions, firms have to stay focused as they begin executing their plan. Owners and next generation leaders must engage in transparent communication to navigate the inevitable bumps that can occur throughout the planning and execution of a succession strategy. The reality is, we’re all human. Life presents curves, and personal and professional goals can change. These anticipated bumps can necessitate larger course corrections in order to keep your plan on track.
Typically there are three areas where succession plans may need course corrections: if founder/owner plans change, if successor plans change, and if Plan B needs to be activated.
Read More
Topics:
Succession Planning,
Selling Your Practice,
Sustainability
The market for wealth management firms has dramatically changed. 20 years ago, people didn’t see resale value in these businesses. When an advisor retired, they hoped they’d find someone who would agree to take over their book. As the industry matured, sales slowly started taking place. It wasn’t easy – there were no standards for valuation or deal terms, no strategies for client retention, few financing options, and concerns about liability.
These days, those issues have mostly been resolved, providing for a real marketplace and more competitive deal terms for businesses. It’s a seller’s market, and in our open marketplace sellers often field 75 or more inquiries for a listing. Practices are being purchased by synergistic partner firms that are aligned from principles, staff and client standpoint. There are many more options for an advisor than existed 20 years ago.
EXPLORING YOUR OPTIONS
Every firm I have talked with in the last year – both large and small -- has received inquiries and offers If your business plans do not include selling, you could file the offer away for the future in a file that may well include other such letters. On the other hand, maybe the offer sparks your interest to learn more about what options you have in the current marketplace. Selling what you have built can be a good strategy when the time and circumstances are right.
Read More
Topics:
Selling Your Practice
Enhancing Your Successor Traits as a Woman in Wealth
Written by Jess Flynn, Communications Director at FP Transitions
Recent Bureau of Labor Statistics data details that women comprise 47% of the workforce, but just 29% of senior management positions. While more women are entering the financial planning profession, they are joining in marketing, administrative, or other staff roles within financial planning firms and related organizations. There is still a large gender inequity between females in leadership at these firms, and it becomes especially apparent as we look at the number of female owners in the financial advisory space.
As advisory firms continue to build profitable, transferrable and enduring businesses, one critical gap in this process has been around attracting and retaining diverse talent. While many firms have openly committed to embracing diversity, equity and inclusion within their firm, the effects of this are yet to be seen in the broader financial services community.
Read More
Topics:
Succession Planning,
Culture,
Next Generation,
Sustainability,
Women in Wealth
/Entity%20Structures%20Blog%20Image-01.png?width=5000&name=Entity%20Structures%20Blog%20Image-01.png)
LLC vs. Corporation. Which entity structure fits your goals?
Understanding your specific needs and specific goals is an important first step of the entity-building process. As Rod Boutin, JD, General Counsel at FP Transitions outlined in a recent webinar, “it is important that we build an entity that clearly identifies and promotes your attainment of those goals. Done right, an entity is a tool to align with your goals.”
Read More
Topics:
Succession Planning,
Organizational Structure,
Business Growth,
Tip of the Week,
State of the Market,
Exit Planning,
Next Generation,
Sustainability,
Wealth Management,
Valuation & Appraisal,
Business Operations
