TRANSITION TALK

Surviving Deal Fatigue

Posted by FP Transitions on Jun 28, 2022 9:30:00 AM

Surviving Deal Fatigue

Despite the continued surge of wealth management M&A activity, one surprising fact remains: most of these market participants are engaging in a transaction for the very first time.  While there are aggregators and larger RIAs that will continue to build up their business through strategic acquisitions, the majority of today’s deals spark from a mutual attraction either from aligned competencies, or complementary competencies, that allow both firms to amplify their growth and sustainability.   

According to James Fisher, Vice President of Mergers and Acquisitions at FP Transitions, “Many practices are looking to be acquired or merge with a larger business to spur growth, to benefit from economies of scale, to offload compliance and day-to-day operations, to increase bandwidth and offerings to clients, or to assist with the retirement of one or more senior owners/partners, among other reasons.”   

Regardless of experience, it takes a lot of patience, communication, time, and expertise to navigate the entire deal process. For firms going through this, on any side of the table, negotiating and documenting the transaction can often be more time consuming than anyone anticipated, creating the perfect environment for an all-to-common problem: deal fatigue.  

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Topics: Selling Your Practice, Acquisition, M&A, Business Value, Deal Structure, Buying & Selling, Mergers

M&A Mid-Year Update

Posted by FP Communications on Jun 8, 2022 12:00:00 AM

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We just got back from Fort Lauderdale where we spoke at the WealthStack RIAEdge conference for WealthManagement.com. James Fisher, FP Transitions’ Vice President of M&A spoke with several advisors onsite. We wanted to take some of the questions that we received and see if we could answer them for our broader client base.

HubSpot Video

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Topics: Selling Your Practice, Commentary, M&A, Business Value, Buying & Selling

Top 6 Ways to Grow Your Business

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

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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.

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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

2022 Trends & Predictions from the Experts

Posted by Doug Kenck-Crispin on Dec 7, 2021 4:09:57 PM

2021 is just about behind us, and 2022 is knocking at the door. What are the 2022 trends in the financial planning advisory space that we consult? We had an opportunity to ask our experts what they see in their respective crystal balls...

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Topics: Selling Your Practice, Acquisition, Multi-Generational Ownership, M&A, Business Value, Deal Structure, Financing, Bank Financing, Buying & Selling, State of the Market, Mergers, Tax Regulations, Building Your Team, Valuation & Appraisal, Transactions, Trends

Leveraging the FPT Open-Market Advantage

Posted by FP Transitions on Aug 31, 2021 1:34:12 PM

When it's time to sell your financial advisory practice, knowing the value of your business is just as important as finding the right buyer. But as you begin exploring your options, determining who will be the right buyer to take over your business often takes center stage. The FP Transitions® Open Market will not only locate a new owner who is a good fit for your clients and investment style, but also help you obtain the most value from the sale.

 

Benefits of the FP Transitions Open Market

Tapping into an open marketplace has benefits for both buyers and sellers. Buyers have access to a larger pool of acquisition opportunities with the potential to meet their strategic goals. This includes those outside of their already established network and area, allowing them to expand their reach. And sellers gain access to a large number of qualified buyers in order to find the best possible buyer for their business.

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Topics: Selling Your Practice, Acquisition, Business Value, Buying & Selling

Debunking Five M&A Myths

Posted by FP Transitions on Aug 20, 2021 3:47:30 PM

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During our 2021 Mid-year Market Update, in addition to up-to-date transaction data and trends, our experts, M&A Director James Fisher, JD and CEO Brad Bueermann, explored some myths and misconceptions about the current M&A marketplace.

The problem with misinformation is that as a buyer you may find yourself discouraged from exploring acquisitions or mergers as a growth strategy or from inquiring on businesses that could be a great fit and expand your reach. As a seller, misinformation can lead you to compromising your fit criteria or from exploring a wider pool of buyers.

The following are the top five misconceptions we hear from advisors and from other market participants.

MYTH: Reported transaction data shows a complete view of the industry M&A marketplace.

No current reporting of annual M&A transactions–including ours–encompasses activity across the entire industry. Even if data is being reported based on publicly advertised transactions, many are private and not publicized as larger M&A deals tend to be. Details and terms are often kept confidential regardless, and, as the old adage goes, "the devil is in the details." So, comparing the data and transaction activity across firms participating in M&A can be tricky.

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Topics: Selling Your Practice, Acquisition, Buying & Selling, State of the Market

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

State of the Market: Outlook for Advisory Firm Valuations [Webinar Replay]

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