TRANSITION TALK

10 Reasons to Professionally Value Your Business

Posted by FP Transitions on Nov 28, 2018 2:08:05 PM

10 Reasons to Professional Value Your Practice

Experienced business owners recognize the importance of tracking and monitoring the value of their practice over time. They know their practice is their most valuable asset, and by valuing it, they are empowered to grow, protect, and realize the value they have built.

Following are ten situations where it’s essential to have a current value and accurate understanding of your business.   

1. Increase Value

To cultivate growth and increase the value of your business, you need to have a starting point—a place to grow from. An accurate and comprehensive valuation will identify value drivers and growth opportunities, allowing you to create an informed growth strategy and make changes that will improve performance. The ability to track those changes and the value of the practice year after year enables you to see your progress and ensure your growth is on target

2. Benchmark Your Business

Tracking your value year after year allows for accurate benchmarking of the business. A thorough benchmarking report will look at your business and compare it to similar-sized businesses in the market, evaluating your company’s standing against the competition. Benchmarking reports reveal how your business stacks up against your peers as well as against leaders in the industry.

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Topics: Valuation & Appraisal, Business Value, Business Growth, Acquisition, Succession Planning, Benchmarking

If At First You Don't Succeed...

Posted by FP Transitions on Nov 9, 2018 9:53:20 AM

atfirstyoudontsucceed_banner

In 1953, a start-up business called the Rocket Chemical Company and its staff of three set out to create a line of rust-prevention solvents and degreasers. Toiling in a small lab in San Diego, California, they set about to create a “water displacing” formula for use in the aerospace industry. It took 40 attempts to get the formula figured out.

But figure it out they did, and WD-40 was born. The name stands for water displacement formula perfected on the 40th try. Imagine what would have happened if the inventors had given up after two dozen or so really solid attempts?

The story, and the point, of course, is bigger than trying hard and eventually succeeding. WD-40 was initially a product limited to special uses, an example of which was protecting the outer skin of the Atlas missile from rust and corrosion. But that was just for starters. The product actually worked quite well for a variety of other uses–so well that several employees snuck some WD-40 cans out the plant to use at home on more mundane tasks like squeaky hinges and rusty nuts and bolts. The product eventually became a household staple. By innovating and adapting to the market, this small group of entrepreneurs created something great.

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Topics: Acquisition, Sustainability, Buying & Selling, "Buying, Selling, and Valuing Financial Practices"

SOLD : September 2018

Posted by FP Transitions on Oct 4, 2018 2:11:03 PM

FP Transitions is pleased to announce the recent sales of financial services practices in the following locations:

  • Santa Cruz, CA • $221,000
  • Southern New Jersey • $668,000
  • Maryland • $652,000
  • Southern Oregon • $261,000
  • San Francisco Bay Area • $583,850
  • Northern California • $1,800,000

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

SOLD : July / August 2018

Posted by FP Transitions on Sep 6, 2018 7:00:00 AM

FP Transitions is pleased to announce the sale of financial services practices in the following locations during the months of July and August:

  • Central Coast of California • $3,200,000
  • Cedar Rapids, IA • $807,500
  • Kansas City Area Kansas • $1,198,812
  • Little Rock, AR • $1,450,000
  • Los Angeles, CA • $1,600,000
  • Research Triangle of North Carolina • $1,221,696
  • Southern Coast of Florida • $880,000
  • Southeastern Coast of Florida • $794,037
  • Boca Raton, FL • $988,046

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

How to Successfully Inquire on the Open Market

Posted by James Fisher, JD on Aug 22, 2018 5:00:00 AM

How to Inquire banner photo

It is without a doubt a “seller’s market” when it comes to financial advisory practices. With an average buyer to seller ratio of 50 : 1, sellers can be picky. Given the sheer volume of qualified buyers that send in inquiries for practices listed by FP Transitions on our open market system, it is extremely important for potential buyers to put their best foot forward and show the seller why they are the “cream of the crop.”  

Remember, your inquiry is the first communication you will have with the seller, who likely knows nothing about you. While we don’t recommend drafting a novel, your inquiry should at a minimum tell the seller enough detail to pique the seller’s interest. Inquiries that merely state, “I have cash,” “Let’s talk,” “I need more information,” or “See our website for more information,” are usually immediately stricken by the selling party from consideration, regardless of how well qualified the inquirer may actually be. This is because experienced and successful buyers take the time to make a strong first impression.

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Topics: Acquisition, Buying & Selling, Open Marketplace

Creative Acquisition Approaches

Posted by Rachel Beckwith on Aug 8, 2018 11:13:29 AM

Creative Acquisition Approaches

One of the fastest ways for independent financial service businesses to grow is to acquire another book of business, adding a lump of clients and their assets to a portfolio all at once. The reality is, however, that setting out to buy a business isn’t that simple. 

First, your business must be able to handle a sudden influx of new clients. Your infrastructure must be strong, you must have the people and resources available to provide quality service to clients immediately following the transition, and you must have the financial means to purchase. Second, the current marketplace right now is favoring sellers more than ever. Not only are we experiencing a 50:1 buyer to seller ratio on the open market, but values are at a high and the competition is stiff. We’re seeing a greater number of experienced buyers vying for a seat at the table, and we’re seeing more savvy sellers making strategic decisions. Finally, being able to meet the asking price alone doesn’t necessarily constitute a good fit. Even if you have everything in place to make an acquisition, you must meet a seller’s specific criteria in other areas to be considered.

The good news is that our industry has several other ways to achieve the same exponential growth as buying a book of business without a “traditional” acquisition. Strategies like mergers, continuity partnerships, succession planning, strategic partnerships, and sell & stay tracks offer alternatives for advisors who may not have the enterprise strength to execute a traditional acquisition strategy. The following avenues take planning and patience, but they can yield incredible growth and value in the long run.

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Topics: Acquisition, Buying & Selling, Mergers, Continuity, Equity Pathways, Sustainability

SOLD : May / June 2018

Posted by FP Transitions on Jul 6, 2018 7:00:00 AM

FP Transitions is pleased to announce the sale of financial services practices in the following locations during the months of May and June:

  • Central Louisiana • $4,000,000
  • Baltimore, MD • $2,561,000
  • Houston, TX • $1,435,580
  • Sacramento Area California • $1,004,486
  • San Francisco Bay Area California • $712,000
  • Eastern Virginia • $2,200,000
  • Charlotte, NC • $221,600
  • San Gabriel Valley California • $720,800
  • Dallas, TX • $584,000
  • Southern California • $1,000,000
  • Columbus, OH • $1,067,000

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

SOLD : March / April 2018

Posted by FP Transitions on May 7, 2018 8:00:00 AM

FP Transitions is pleased to announce the sale of financial services practices in the following locations during the months of March and April:

  • Seattle • $700,000
  • San Antonio, TX • $305,900
  • Central Oregon • $655,578
  • Lansing Metro Area Michigan • $476,000
  • Greater Philadelphia Area Pennsylvania • $762,997
  • North Dakota • $700,000
  • Central Louisiana • $200,000
  • Northeastern Illinois • $1,995,000
  • Central Alabama • $782,000

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

SOLD : February 2018

Posted by FP Transitions on Mar 6, 2018 3:23:00 PM

FP Transitions is pleased to announce the sale of financial services practices in the following locations during the month of February:

  • San Francisco Bay Area • $611,950
  • San Diego Area • $1,740,000
  • Los Angeles Metro • $2,400,000
  • Pacific Northwest • $1,737,637
  • South Louisiana • $237,243

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

What Makes a Successful Buyer? [VIDEO]

Posted by FP Transitions on Mar 2, 2018 10:07:41 AM

In 20 years of helping financial practices transition, we have closed over 3,000 successful deals–both on the open market and through privately organized transactions. Each deal is different, but we have been able to identify certain key traits and behaviors that facilitate the most successful acquisitions.

1. Build a strong business foundation

Advisors who take the time to self-assess and build (even if it takes a few years) present as a better candidate to sellers. They have ensured their business has the cash flow and capacity to service an influx of clients. Successful buyers are those willing to put in the work to prepare their business, and take care to make the transition as smooth as possible for the outgoing owner and new clients.

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Topics: Acquisition, Testimonial, Business Growth

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