TRANSITION TALK

Mid-Year Market Review [VIDEO]

Posted by FP Transitions on Aug 11, 2020 4:09:23 PM

Earlier this year, with the global pandemic raging and markets in decline, we promised our clients and the industry that we would continue to provide an inside look as to what was happening in the M&A market for financial advisory practices.

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Topics: Commentary, M&A, Buying & Selling, Transactions

Considering Key Staff During the Sale of Your Business

Posted by FP Transitions on Jul 30, 2020 1:25:00 PM

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It’s hard to keep secrets in a small office. The rooms are tight, the walls are thin, and it’s just a matter of time before everyone knows everyone else’s business. Even when an owner has quietly decided to sell their practice, they should assume that staff members will eventually find out (if they haven’t already). In our experience, it’s best that employees hear the news from someone they trust: the owner.

Prospective sellers are often reluctant to speak to staff members about their exit plans because they aren’t sure how the selling process will pan out and they don’t know how the staff will feel about the change. While it’s important to be sure of your decision before announcing your plan, looping your staff into the process can increase your success and can even help shape the structure of your sale.

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Topics: Selling Your Practice, Deal Structure, Buying & Selling, Building Your Team, "Buying, Selling, and Valuing Financial Practices"

Buyer Benefits of a Sell and Stay® Transaction

Posted by FP Transitions on Jul 22, 2020 10:59:00 AM

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The Sell and Stay® approach to selling a financial services business was developed by the professionals at FP Transitions to fulfill the preference of many sellers to gradually exit the business by giving up their ownership obligations while continuing to service clients and earn an income. This arrangement can be customized in a hundred different ways, but often entails an owner selling the majority–or all–of their ownership to a third-party buyer and remaining as an employee of the business for a set number of years (typically 3-5) before fully exiting.

Buyers who are open to this type of transaction not only access a larger acquisition pool, but can enjoy other unique advantages as well. You, of course, enjoy all the benefits of a traditional acquisition: immediate growth, available financing options, expansion into different areas and niches, and economies of scale. In addition, the acquisition can help you tackle some other areas of your long-term growth strategy through:

    • Client Continuity and Retention
    • Turn-key Practice / Office
    • Talent Acquisition
    • Reduced Training Costs
    • New Competencies and Service Offerings
    • Institutional Knowledge
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Topics: Acquisition, Deal Structure, Buying & Selling, Sell and Stay™

Marketplace Activity : Recently Sold Practices

Posted by FP Transitions on May 4, 2020 10:46:00 AM

Even with market volatility over the past few months, the marketplace for financial advisory businesses has remained strong. FP Transitions is pleased to announce the recent sales of financial services businesses in the following areas :

  • Palm Beach, FL  |  $6,000,000
  • Houston,TX  |  undisclosed
  • North Carolina  |  undisclosed
  • Rhode Island  |  $1,500,000
  • San Francisco Area, CA  |  undisclosed
  • South Carolina  |  $3,600,000
  • Sacramento Area California  |  undisclosed
  • Atlanta Area, GA  |  undisclosed
  • Miami Area, FL  |  $350,000
  • Lafayette Parish, LA  |  undisclosed
  • Rhode Island  |  $700,000
  • Houston, TX  |  $1,100,000
  • Chicago Area, IL  |  $120,000
  • Northwestern, TX  |  $450,000
  • Boston Area, MA  |  undisclosed
  • Florida Panhandle  |  undisclosed
  • Tampa Area, FL  |  $750,000
  • North Carolina  |  $450,000
  • Michigan  |  $1,200,000

VIEW CURRENT LISTINGS HERE 

LIST YOUR PRACTICE WITH FP TRANSITIONS

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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. 

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

Offers in the Mail

Posted by David Grau Sr., JD on Apr 30, 2020 1:13:11 PM

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For many financial advisors, it has become commonplace to receive unsolicited offers in the mail. The offers to buy practices usually promise a competitive valuation and purchase price, great terms and future opportunities, and are backed by private equity, bank financing, or other cash reserves. More than anything, these letters bring hope, choices, and affirmation that an advisor has built something valuable and transferable.

Some of these letters arrive from well-known firms but many are from smaller, previously unknown suitors whose marketing strategy is to grow rapidly through practice acquisition. The advisors we talk to on a daily basis tell us about these letters dismissively at first, but they also say they keep the letters for future reference–just in case. Hope and choices are good things, even if they’re not needed today.

It is always flattering to be recognized, wanted, and valued, even if your name comes from a purchased mailing list. The more important point may be that these letters get many independent advisors, like you, thinking and wondering about the future. Questions arise: What is my value? What options do I have? Is this the best offer, or maybe the only offer, I’ll ever get? Can I sell my practice and keep working, given that I’m not ready to fully retire right now?

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Topics: Selling Your Practice, Acquisition, Due Diligence, Buying & Selling, Press Release, Transactions

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
Georgia
Western Louisiana
Kansas City, MO
Eastern Pennsylvania
Marin County California
Seattle, WA
Iowa

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
Delaware
Northeastern Wisconsin

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

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

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

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

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. 

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

SOLD : Aug/Sept 2019

Posted by FP Transitions on Oct 5, 2019 2:06:00 PM

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

  • Central California Coast  |  $1,200,000
  • San Francisco, CA  | undisclosed
  • Central Michigan  |  $87,000
  • Baton Rouge, LA |  undisclosed
  • Boston Area Massachusetts  |  undisclosed
  • Delaware  |  $200,000
  • South Dakota  |  $600,000
  • Orlando Area Florida  |  $700,000

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

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. 

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

Is Mediation For Your Deal a Good Investment?

Posted by Christine Sjölin on Aug 5, 2019 12:51:09 PM

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Acquisition strategies are varied and diverse; how an advisor or a firm pursues acquisitions will depend on their business model and philosophy. While the approach to acquisition should be personalized, it is a mistake to do it alone. In addition to the successful transactions presented in this report, FP Transitions works with many advisors who have endured failed sales or stalled deals.

The story of a failed transaction often begins with one or both parties hesitating to hire a mediator, the perception being that their deal is “simple,” and that buyer and seller can save money if they do it themselves. The information we gather from these clients about their failed sales gives our consultants broader perspective on what works and what doesn’t in an evolving marketplace. When we combine this information with the data gathered from successful deals, it is clear that investing in a mediator improves results for both buyers and sellers in terms of success rate, speed, and value.

One misconception advisors often share with us is the belief that one-on-one negotiations are easier and brokers will just get in the way of a personal connection between buyer and seller. This perception is understandable, as it is essential that buyer and seller have a mutual affinity and have aligned interests in order to transfer and retain client relationships after the deal is done. However, mutual affinity is not sufficient to get buyer and seller over basic negotiating factors, such as valuation, deal structuring, and tax allocation of the purchase price. These are complex topics where a mediator can provide expertise and perspective to both sides and advance the deal forward.

Financial services is such a regulated industry, with the added complexity of requiring a long transition, that it is common for a sale to get bogged down in “paperwork.” So, while each party does need representation, there also needs to be a knowledgeable and neutral mediator who can be responsible for keeping everyone on track, offer solutions, and has data to show why one side’s objection is or is not valid.

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Topics: Selling Your Practice, Acquisition, Buying & Selling, Trends in Transactions Study, Transactions

SOLD : July 2019

Posted by FP Transitions on Aug 2, 2019 8:00:00 AM

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

  • Seattle, WA  |  $780,000
  • Central Coast New Jersey  |  $630,000
  • Fresno Area California  |  undisclosed
  • Kansas City Area Missouri  |  $1,300,000
  • Southern Illinois  |  undisclosed
  • Portsmouth, RI  |  $2,450,000
  • Orange County California  |  $260,000
  • Philadelphia Area Pennsylvania  |  $460,000
  • Central Colorado  |  $880,000
  • Upstate New York  |  undisclosed
  • Philadelphia Area Pennsylvania  |  $1,770,000

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

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. 

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

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