TRANSITION TALK

Purpose, Perspective, Premise — the Three Ps of Business Valuation

Posted by FP Transitions on Nov 1, 2023 9:00:00 AM

Banner Blog - Purpose, Perspective, Premise — the Three Ps of Business Valuation.

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

Business Insights Solving for Growth & Capacity Constraints

Posted by FP Transitions on Oct 3, 2023 9:00:00 AM

Blog Header - Business Insights Solving for Growth  & Capacity Constraints

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

Top 10 Drivers of Business Value

Posted by FP Transitions on Sep 6, 2023 8:00:00 AM

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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

Defining Your Enterprise: What Are You Building?

Posted by David Grau Sr., JD on Jun 20, 2023 10:30:00 AM

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For our clients, the courses of action may differ, but growth is the number one priority. The goal could be to grow and then sell it to a third party for maximum value. Alternatively, the aim could be to create a sustainable enterprise capable of supporting a gradual transfer of ownership, leadership, and responsibility to an internal successor. 

Many advisors arrive on our doorstep using terms like “silo” and “ensemble” to describe to us what they believe they have built. However, these terms merely describe the organizational structure, which is just one facet of the strength of an independent advisory enterprise. These terms are not sufficient for diagnosing ALL structural elements needed to support a sustainable, profitable, valuable enterprise in this highly-regulated and sometimes complex industry. 

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Topics: Business Growth, Sustainability, Enterprise

Solutions to the Advisor Marketing Yo-Yo Effect

Posted by FP Transitions on Jun 19, 2023 10:00:00 AM

JUNE BLOG - BANNER - SOLUTIONS TO THE ADVISOR MARKETING YO-YO EFFECT

End the Cycle: How to Make Marketing a Constant Business Generator

Marketing powers growth, which is why it’s a priority when we’re in need of more business. But over time, with great marketing, business starts booming. That’s when many advisory firms begin to pivot to client service and satisfaction, letting the lead generation campaigns run their course. When the funnel starts to dry up, we dig back into early-stage marketing on social media, email campaigns, more lunch meetings – only to hit pause once a few more clients trickle in. Enter the vicious cycle of the start-and-stop campaigns. We get it, you cannot do it all.

But what if I told you there was a way? Would you be interested? We’re breaking down the challenges and matching you with immediate solutions. Let’s go!

CHALLENGE #1: In the Moment Decisions

Something triggers a renewed marketing focus. It could be anything, but more commonly this can come from an increase in capacity (new team members, better technology, clients on target and requiring less focus) or it could be due to a need for more revenue (profit margins are down, loss of a long-time client, more clients entering retirement). Whatever the source, you start looking for ways to boost revenue.

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Topics: Education, Business Growth, Business Operations, marketing

Elements of A Winning Recruitment Strategy

Posted by FP Transitions on Jun 8, 2023 12:00:00 PM

 

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Whether you’re looking for seasoned talent or up-and-coming professionals to fill out your team, a winning recruitment strategy is built with intention. It's not just about the role you need to fill, but also about identifying the type of person who best aligns with your business’s culture and future growth goals.

What is the reason for adding this person to the team? Is it simply a matter of capacity? Or are there some other opportunities you can seize in the process? Recruiting the right person can also address your goals to:

-    Expand your service offerings
-    Diversify your client base
-    Create improved operational efficiencies
-    Secure continuity of client service
-    Prepare for succession of business ownership

Understanding which of these align with your existing business plan will help you to tailor role descriptions and find the very best person. Setting the table for success requires vocalizing the right words, expectations and opportunities to your new hire at the outset. Additionally, this focus will help you to communicate what you can offer to attract your ideal candidate.

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Topics: Compensation, Business Growth, Culture, Talent Recruitment, Building Your Team, Equity Pathways

Tips for Increasing Firm Value

Posted by FP Communications on Apr 11, 2023 10:00:00 AM

 

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You invest a substantial amount of energy into running, growing, and evolving your business. Knowing when, where, and how to best direct your efforts could mean the difference in thousands, or even millions, of dollars long-term. Having spent two decades accruing and organizing essential datapoints on more than 15,000 businesses, we’ve got a tight grasp on what matters most at each step of the way.

Depending upon your goals, certain areas will move the needle faster than others. Rather than guess at the best use of your limited resources, our team has compiled a list of places where your ownership and C-Suite team can start assessing opportunities for increased firm value.

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Topics: Selling Your Practice, Business Growth, M&A, Revenue Strength, Business Value, Revenue Sharing, Multiples, Benchmarking, Valuation & Appraisal, KPI

Your Catalyst for Growth and Progress: Focus on Your Team

Posted by Colleen Jordan Hallinan on Feb 1, 2023 3:45:00 PM

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Editor’s Note: We originally posted this article by Colleen Jordan Hallinan in 2018. Since then, the need for business owners to focus on building the right team in order to grow and establish sustainability has only increased. And so, five years later, Colleen’s guidance on nurturing your team, evolving your own role, and adjusting your mindset to cultivate a stronger, more capable group of professionals is just as relevant.


Successful, ambitious, and conscientious advisors ask questions like: How do I create next-level growth? What will it take to build a firm that delivers an extraordinary experience to my clients and their families? How am I going to achieve my own next-level life? 

The answer starts with another strategic question: What has to happen to give you the freedom to focus on precisely those aspirations?

Your catalyst for growth in all three areas lies in the talents of your team. Make your A players your #1 priority and you’ll have an alchemy that expands your available time and transforms exhaustion and obstacles into more space and energy.

A Players

But it doesn’t come without a cost. The cost is personal sacrifice of current habits, beliefs, ego, and behavior, plus an investment of more time now to blend together the ingredients for that alchemy. Your results will come from your ability to:

  • let go and stay focused on the big picture,
  • place yourself in service to your team, and
  • treat them like your best clients.
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Topics: Succession Planning, Business Growth, Next Generation, Sustainability, Building Your Team

(Tech) Stacked for Growth

Posted by FP Communications on Jan 12, 2023 10:12:00 AM

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Growth can be enabled – or hindered – by your technology. And not only that, but it can also seriously erode your profit margin if it costs you clients, requires constant fixing, or slows down cross-department collaboration. But here’s the thing: NOT using tech is the bigger mistake you can make. With so many best-in-class solutions on the market (and more appearing everyday), certainly having something is almost guaranteed to be better than nothing…right? Let’s explore your best tech investments that enable revenue growth in 2023.

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Topics: Business Growth, Industry News, Next Generation, Compliance, Client Retention, Wealth Management, Trends, Branding, Tech, marketing, Client Experience

7 Acquisition Tactics You Can Implement Today

Posted by Elise Rogers on Oct 10, 2022 8:50:00 AM

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rarely meet a financial advisor who doesn’t immediately mention that they want to buy a practice. It seems to be every advisor’s goal. Of course it is. And in my fifteen years in the industry, I have seen why.

One of the fastest ways for a firm to grow is to acquire another book of business. However, the process is more nuanced and competitive than most advisors seem to think. Most assume they will figure it out as they go along. If you take the unguided DIY approach, however, mistakes will be made–perhaps big ones–and you’re likely to leave money on the table. Our EMSTM

EMS™

Professional members know this more than anyone, which is why they've engaged our experts to help them prepare and achieve their acquisition goals. 

 

Like every aspect of business ownership, acquiring a book of business takes advanced consideration and preparation. These are a few steps you should be taking now, prior to developing and executing your acquisition strategy.  

1. Develop Your Buyer Profile

Membership to fptransitions.com is free. We don’t believe there should be a series of hoops to jump through before you can explore the largest open market of M&A opportunities; or even to access our library of business building, acquisition, and succession resources.

Step one to taking advantage of your fptransitions.com membership is to complete your buyer profile. This series of basic questions gives the team at FP Transitions an overview of your company and team so we can best help you find acquisition opportunities that would be a good fit.

Pro tipFP Transitions uses the information provided in your profile to search our database of 25,000+ advisors to find the right buyers for private sales, continuity partner matching, and successor searches.

The buyer profile is your opportunity to offer information that makes you stand out from your peers. The Practice Description field especially. If you offer a few concise thoughts on what makes your practice unique, you’re already setting yourself apart.

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Topics: Acquisition, Business Growth, Business Value, Continuity Partner Matching