TRANSITION TALK

Independent Advisors Will Unlock the Future (If They Can Hold Onto the Keys)

Posted by FP Transitions on Sep 5, 2023 9:15:00 AM

Blog Banner - INDEPENDENT ADVISORS WILL UNLOCK THE FUTURE (1)

Even though it had been in the works for years, last month’s Schwab/Ameritrade merger left both organizations’ advisors wondering what it meant for them. The good news is that the transition has been seen as largely successful, with only some tech snafus which, let’s be honest, is to be expected when you’re talking about huge platform changes for millions of accounts. Adapting to change rarely happens overnight.

Read More

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

Selling Your Practice, One Chance to Do it Right

Posted by FP Transitions on Aug 30, 2023 9:30:00 AM

Blog - Selling your practice, One chance to do it right

The decision to sell a financial services practice is a difficult one for any advisor to make. After a lifetime of work to build your business, and after years of earning your clients’ trust, how do you turn the job over to someone else? Will they work as hard as you have? Will they care as much as you do? Will they always put your clients’ interests first? When selling your practice, you get just one chance to do it right. The following case study provides some unique insights into the process and illustrates the opportunities, and the mistakes, that many first time sellers make:

Read More

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

Price, Not Value, Is a Product of Negotiation

Posted by FP Transitions on Jul 24, 2023 9:00:00 AM

Blog Banner - Price, Not Value, is a Product of Negotiation

Price is usually the most difficult hurdle for buyers and sellers to overcome. The value of a business is different for each party participating in a transaction and is based on opinion and the specific set of circumstances for each individual. Price, on the other hand, is the number at which the transaction is executed. Yes, value informs price, but it is not the only influencer. Price is also the result of good faith negotiations between buyer and seller. While negotiation does not necessarily impact each party’s perception of value, it allows for dialogue so that both sides arrive at a price where the value for each individual overlaps and a mutually beneficial deal can be struck.

Read More

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

Tips for Increasing Firm Value

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

 

Blog - Tips for Increasing Value 16-9

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.

Read More

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

2023 Financing Update - An Interview with Live Oak Bank

Posted by FP Communications on Feb 27, 2023 9:26:00 AM

2023 Financing Update Live Oak

We’re coming off an incredible year from mergers and acquisitions yet again. In fact, we closed out 2022 as one of our greatest ever for FP Transitions, and the same goes for Live Oak Bank. We took a moment to reconnect with James Hughes, SVP of Advisory Lending for Live Oak Bank, to break down the key areas advisors should consider before they enter the 2023 mergers and acquisitions environment. 

Read More

Topics: Acquisition, M&A, Business Value, Deal Structure, Financing, Bank Financing, Buying & Selling, State of the Market, Next Generation, Valuation & Appraisal, "Buying, Selling, and Valuing Financial Practices", Sell and Stay™, Trends

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.  

Read More

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

Blog Header Image (4)

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

Read More

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

Recap of the FPT 2022 M&A Market Update

Posted by FP Transitions on May 8, 2022 7:13:00 PM

2022 FPT Market Update - Blog Header

Our summary of the independent advisory M&A market, including a look at real transaction data, context to help advisors understand what's driving the data, and an unbiased look at what's really going on out there. 

Read More

Topics: Commentary, FP Transitions, M&A, 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...

Read More

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

The Opportunity of a New Year

Posted by FP Transitions on Jan 4, 2021 2:47:00 PM

Pathfinder_blogbanner

Happy New Year!

More than ever, we look forward to 2021 with the sense of reset and resolution that comes with the changing of the calendar year. We can breathe a sigh of relief that we made it through the chaos and onslaught of 2020.

If we take a moment to look back before we look ahead, we can see just how far we’ve come and how resilient we’ve been as a community of global citizens, financial professionals, and business owners. 

In terms of M&A activity, the financial services industry has held its ground despite the market downturn that came earlier in the year. This is a reflection of the shrewdness of professionals like yourself. In the face of market uncertainty, you rose to the challenge, adapted as necessary, and pushed forward.

Read More

Topics: M&A, State of the Market, FPT in the News