A Look Back at Advisory Success in 2019

Posted by FP Transitions on Jan 2, 2020 4:43:00 PM

As we jump into 2020–a new decade!–we are proud to look back and see so much success in growth and transitions for our clients. In 2019, FP Transitions facilitated a variety of business growth goals for our community of advisors through strategies that Included internal succession, enterprise structuring, sustainable business growth, mergers, and external sales.

We'll soon be releasing our M&A data and observations from 2019, so stay tuned!

Over the last year helped facilitate external and internal transitions all over the country, including in : 

Central Maine
Northern Kentucky
Sacramento, CA
Columbus, OH
Dallas, TX
New Haven, CT
Baltimore, MD
Houston, TX
Northern Michigan
Atlanta, GA
Gulf Coast Florida
Southern Florida
Northern California
Boise, ID
Upstate New York
Southern Illinois
Fresno Area, CA
Central Coast New Jersey

Washington D.C. Area
Orange County California
Richmond, VA
New York, NY
Palm Beach, FL
San Francisco, CA
Santa Cruz, CA
Central North Carolina
Orlando Area, FL
Eastern Tennessee
Northern New Jersey
Western Louisiana
Kansas City, MO
Eastern Pennsylvania
Marin County California
Seattle, WA

New York, NY
Central Coast California
Boston, MA
Baton Rouge, LA
Central California
Newark Area, NJ
Minneapolis, MN
Southern Texas
Central Michigan
Chicago, IL
Southern California
Eastern New York State
Western Oregon
Central Colorado
Philadelphia, PA
Portsmouth, RI
Northeastern Wisconsin

We're also pleased to announce that we closed out the year with sales of financial services businesses in the following areas!

Read More

Topics: Selling Your Practice, Acquisition, Buying & Selling, SOLD

Happy Holidays!

Posted by FP Transitions on Dec 23, 2019 10:51:00 AM

Happy Holidays from the FP Transitions family!

May your holidays be filled with warmth, merriment, and a splash of good cheer!
Take a behind the scenes look at how this year's holiday photo was created below. Cheers!
Read More

SOLD : Oct/Nov 2019

Posted by FP Transitions on Dec 9, 2019 2:16:30 PM

FP Transitions is pleased to announce the recent sales of financial services businesses in the following areas :

  • Northern Kentucky  |  $600,000
  • Northern Michigan |  $795,000
  • Sacramento Area, CA  |  undisclosed
  • Washington D.C. Area  |  $1,200,000
  • Eastern Pennsylvania  |  undisclosed
  • Dallas, TX  |  undisclosed
  • Sacramento Area California  |  $1,100,000
  • Washington D.C. Area  |  $565,000
  • Richmond, VA  |  $920,000
  • Santa Cruz, CA  |  $345,000
  • Dallas Area, TX  |  $3,700,000
  • Northeastern Pennsylvania  |  $535,000
  • Palm Beach, FL  |  $880,000




Sold announcements include all closed third-party transactions facilitated by FP Transitions, including private listings, pre-arranged matches, and those listed on the open market. 

Read More

Topics: Selling Your Practice, Acquisition, Buying & Selling, SOLD

Estimating Value Based on Recurring Revenue

Posted by FP Transitions on Nov 22, 2019 11:35:24 AM

The following is a short excerpt from Estimating Value Based on Recurring Revenue by our VP of Business Valuation Services, Ryan Grau, CVA, CBA.

It is important to understand the difference between an adjusted pricing multiple based on the specific characteristics of the business being valued versus a “rule of thumb.” A rule of thumb for the financial services industry is that businesses sell for two-times gross recurring revenue and one-times non-recurring revenue, or that they are worth five-times Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). Often sellers approach us asking if the offer they have received based on a rule of thumb is sufficient or fair. This question cannot reasonably be answered without understanding the revenue characteristics of the practice.

Read More

Topics: Business Value, Valuation & Appraisal

Targeted Growth Solutions for Financial Advisors - FREE eBook Download

Posted by FP Transitions on Nov 13, 2019 1:17:01 PM

Today’s independent financial advisors face an endless array of opportunities (and challenges). The key is to identify impediments before they arise and to develop strategies for tackling the issues that present the greatest opportunities for improvement and growth.

There are four main challenges essential to the success of your business:

Read More

Topics: Compensation, Succession Planning, Acquisition, Business Growth, M&A, Next Generation, Talent Recruitment, Enterprise

Elevating a Legacy : A G2 Success Story

Posted by David Grau Sr., JD on Nov 7, 2019 12:18:25 PM


In our first book “Succession Planning for Financial Advisors,” founder David Grau Sr., JD recounted one advisor’s early succession journey, including his ownership team’s bumps and triumphs as they executed the first tranches of their plan. Today, David circles back to provide an update on the successor team and all they’ve accomplished in six short years:

Ten years ago, around 2009, the founder and sole owner of Diversified Financial Consultants in Wilmington, Delaware, hired a local business attorney to help him develop a succession plan for his financial planning practice organized as an S-corporation. Calling on a practice’s local business attorney is a common starting point, and interestingly, it seems to be a common failure point when attempting to mesh the goals of the founder and next-gen advisors.. In this case, the founder’s attorney strongly suggested that in order for the founder to maintain full and unfettered control, the best course of action was a phantom-stock plan.The first draft was professional and thorough. It was also rejected out of hand by the team of prospective owners – they wanted to be real owners and investors in the business they were helping to grow.

Read More

Topics: Succession Planning, Multi-Generational Ownership, Next Generation, Sustainability, Enterprise

Next-Gen Impact

Posted by Kem Taylor on Oct 23, 2019 5:11:16 PM

NextGen Impact_blogbanner

The sustainability of financial services businesses depends on the incorporation of new talent. The demand for next-generation talent continues to increase as longevity, continuity, and staying competitive become top priorities for many financial advisor-owners.

Next-generation advisors are in a unique position to leverage their generational experiences and opportunities that influence business value to carve out their ideal career path.

Opportunities Abound

The demand for financial advice is growing faster than the number of financial planners available to provide it. Household assets are increasing and the number of households with over $200,000+ in income has increased 10% in the last two years and is expected to climb.1 Along with accumulating their own wealth, younger investors are set to receive inheritances from their parent’s generation. The need for asset management is further exacerbated by the fact that the average age of financial advisors trends older so many are set to slow down or retire over the next ten years.

The battle for talent is upon us and it is important to recognize that as a next-generation financial planner, you have more career choices than ever. You can start your own business, or seek employment at a broker-dealer, bank, wirehouse, or RIA. Even those choices have many options within themselves. For instance, in terms of joining an RIA, 15 years ago, small firms were often the only option. Today, you can work for a smaller regional enterprise, a national company with hundreds of advisors and staff, or an RIA somewhere in between.

Read More

Topics: Succession Planning, Multi-Generational Ownership, Next Generation, Sustainability, Enterprise

NEW Roundtable Talk - G2 Perspectives : Cultural Fit and the Ownership Mentality

Posted by FP Transitions on Oct 21, 2019 11:59:31 AM

In this Roundtable Talk, the next-generation ownership of FP Transitions discuss their own experiences in taking the mantle to shape the team and future of the business. They explore hiring for cultural fit and potential value, the definition of “ownership mentality,” and how they might identify potential G3 leaders in the generation beyond their own.

Watch a short clip below and click here to watch the full, unscripted discussion.

Read More

Topics: Succession Planning, Next Generation, Talent Recruitment, Enterprise

FPT in the News - Journal of Financial Planning: Lay the Foundation for the Next Generation of Ownership

Posted by FP Transitions on Oct 10, 2019 10:20:39 AM

In the October 2019 issue of the Journal of Financial Planning, FP Transitions' Christine Sjölin, VP of Strategic Development and Operations, contributed her article "Lay the Foundation for the Next Generation of Ownership." The article discusses the importance–and challenge–of seeking out and recruiting next-generation talent in the financial services industry. Christine explores implementing internship opportunities to recruiting new advisors, strategies for talent retention, and how to incorporate ownership opportunities into your compensation structure. 

Read her full article, "Lay the Foundation for the Next Generation of Ownership," now at

Read More

Topics: Succession Planning, FPT in the News, FPA, Next Generation, Talent Recruitment, Sustainability, Journal of Financial Planning

Entrepreneurs Need Intrapreneurs

Posted by Kem Taylor on Oct 8, 2019 2:49:38 PM


We all know what an entrepreneur is. Many independent financial advisors would likely identify themselves as an entrepreneur. 

Many entrepreneurs worked 18-hour days to get their business off the ground and wore all the hats in the company–CEO, Marketing Director, H.R. Manager, IT Coordinator, Bookkeeper, and Visionary. They are their own boss. They create new things. They continuously solve problems. They have initiative. And, importantly, they can tolerate risk more than most people. 

A lesser-known term is "intrapreneur."

Read More

Topics: Succession Planning, Business Growth, Next Generation, Sustainability, Enterprise

Blog Comments