TRANSITION TALK

(Tech) Stacked for Growth

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

Blog - Tech Stacked (1)

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.

Read More

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

Blog-7-Acq-Tactics

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 Grow 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.

Read More

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

Maximizing Key Drivers For Business Revenue and Growth

Posted by FP Transitions on Jul 12, 2022 9:15:00 AM

Maximizing Revenue Drivers

For many years, our data has shown that firms with over $2M in annual revenue tend to grow twice as fast as those with $250K in annual revenue. Contrary to how it might seem, this is actually a function of their structure, not necessarily their size. These firms have cultivated efficiencies in cash flow, capacity, expenses, and operational systems to support scalability and growth. These sophisticated structures are accessible to most businesses–in a wide range of revenue levels–if they’re willing to explore and dedicate time and resources to improve.  

Read More

Topics: Business Growth, Business Value, Client Retention, Benchmarking

Top 6 Ways to Grow Your Business

Posted by Christine Sjölin on Apr 11, 2022 2:30:00 PM

6 Ways Blog Image Header-01

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

LLC vs. Corporation. Which entity structure fits your goals?

Posted by FP Transitions on Feb 23, 2022 1:32:32 PM

 

Entity Structures Blog Image-01

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

Addressing Sustainability – One step at a time.

Posted by FP Transitions on Jan 12, 2022 12:54:26 PM

Sustainability Blog Image 3-01

Read More

Topics: Continuity Planning, Webcasts, Multi-Generational Ownership, Organizational Structure, Business Growth, Tip of the Week, Business Value, Client Success, Sustainability, Client Relationships, Business Operations

KPIs. What are Key Performance Indicators, and how do you Leverage them?

Posted by FP Transitions on Nov 29, 2021 7:47:00 AM

MicrosoftTeams-image (7)

KPIs, or Key Performance Indicators

During a recent webinar hosted by FP Transitions, several attendees had questions about KPIs. Marcus Hagood Director of Equity Management System at FP Transitions, and Mike McKennon, EMS Consultant at FPT, had previously hosted a webinar on KPIs, and many of those key points are featured in the following post.

 Knowing the KPIs

The industry is flush with discussions of KPIs. Surely, you’ve heard the term before, or perhaps seen these indexes described as performance metrics, key variables or key success indicators. At FP Transitions, we use the term Key Performance Indicator; but ultimately, the data these terms convey is the same. KPIs are a unit of measurement leveraged to help you determine where your business is at, where you want to go, and will ultimately provide you with a road map of how you should proceed on your journey.

Read More

Topics: Webcasts, Business Growth, Tip of the Week, Deal Structure, State of the Market, Sustainability, Benchmarking, Valuation & Appraisal, Business Operations

Mid-Year Market Update - Key Insights

Posted by FP Transitions on Aug 9, 2021 3:07:11 PM

Last month our M&A Director James Fisher, JD and CEO Brad Bueermann delivered our 2021 Mid-Year Market Update and explored marketplace activity for the first half of 2021.

We all know that 2020 was a truly unique year on all fronts. The financial services M&A marketplace was no exception (as we discussed back in January).  The effects of 2020 have carried over into 2021 and have impacted transactions in some unexpected ways–and have potentially changed deal term norms from here on out.

Our full Mid-Year Market Update presentation was close to 60 minutes, including a live Q&A session, and covered up-to-date transaction data and trends, realities of today's industry, qualities of successful buyers, and common acquisition misconceptions.

To focus in on some of the most important highlights from the session, Craig Strauser sat down with James Fisher, JD to discuss them further. Watch their chat below.

Read More

Topics: Compensation, Business Growth, Sustainability, Enterprise

Balancing Enterprise Strength and Revenue Strength

Posted by FP Transitions on Jul 30, 2021 3:29:19 PM

Balancing Enterprise Strength and Revenue Strength

Many financial services businesses focus on revenue strength while downplaying–or ignoring–enterprise strength. However, revenue strength and enterprise strength are both critical to the growth and sustainability of a business. When revenue is the sole driver of your value, you’re leaving money on the table and jeopardizing the long-term success of the business.

Since revenue and enterprise strength influence the value of your business in different ways, it's crucial to understand these differences and why balancing the two is so important. While clients, fees, and assets under management (AUM) pay the bills, the absence of a solid business infrastructure will put a company's longevity at risk. Whether you’re determined to create explosive business growth or have a sale–external or internal–on the horizon, knowing how to position your company now can result in a higher return on your efforts and investment for the years to come.

Revenue vs. Enterprise Strength

Revenue strength represents the source, quantity, and quality of your cash flow. This includes your active income generated based on advisory fees, commissions, and other financial planning services. Revenue strength accounts for your team’s compensation and other business expenses. Revenue strength represents the top-line accounting of the business.

It's the value of your book.

Read More

Topics: Business Growth, Revenue Strength, Enterprise Strength, Cash Flow, Sustainability

The Fine Art of Enterprise Consulting

Posted by David Grau Sr., JD on Jul 26, 2021 5:10:17 PM

MediationExcerptBlog_banner

FP Transitions conducted most of its work by phone and video conferencing long before the virus made this approach commonplace. So, it is with a great deal of humility, and a little courage, that we admit that even after two decades of honing our craft, we’re still perfecting how to provide consulting solutions in this fashion, to this unique profession.

Providing advice over a phone line or a computer isn’t all that difficult; what’s harder is gathering enough high-quality and relevant information to diagnose the problem or problems and then to provide customized, accurate and practical solutions. To do all that, we’ve had to learn how to listen at a professional level–and we had to design those systems and processes almost from scratch.

The mistake that almost all consultants and coaches in this industry make is to try to get an advisor on board as quickly as possible so that, as information providers, they don’t give away too much up front or spend too long trying to help only to be passed over as the service provider. The process usually comes down to 30 minutes of discussion and then a quick diagnosis that best fits what the consultant or coach has to sell, rather than what the client truly needs.

We don’t do it that way.

Read More

Topics: Compensation, Business Growth, Sustainability, Enterprise