FP Transitions is pleased to announce the recent sales of financial services businesses in the following areas:
FP Transitions is pleased to announce the 2019 sales of financial services businesses in the following areas:
- Richard Metro Area, VA • $520,000
- Central Illinois • $390,000
- New Haven Area, CT • $2,000,000
- Colorado • $200,000
- Eastern Pennsylvania • $610,000
- Minneapolis Metro Area • $700,000
- Northeastern Wisconsin • $190,000
- Atlanta Metro Area • $330,000
- Eastern New Jersey • $1,500,000
- Eastern New York State • $300,000
- New York, NY • Undisclosed
- San Francisco Bay Area • $1,100,000
- Pacific Northwest • $950,000
As we step into the new year, we like to reflect on the successes of our clients over the past year. In 2018, FP Transitions is proud to have helped advisors achieve their business goals through a variety of strategies including internal succession, enterprise structuring, sustainable business growth, mergers, and external sales.
Over the last year helped facilitate external and internal transitions all over the country, including in :
We're also pleased to announce the most recent sales of financial services practices in the following areas!
- Central California • $1,500,000
- Southeastern Connecticut • $800,000
- Chicago, IL • $317,000
- Northwestern US • $1,000,000
- Eastern New York State • $410,000
- Northwestern Wisconsin • $340,000
- Northern Alabama • $3,000,000
- Columbia Metro Area of South Carolina • $1,360,000
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.
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
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
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.
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.
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
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