TRANSITION TALK

SOLD : April/May 2019

Posted by FP Transitions on Jun 6, 2019 7:54:02 AM

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

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

SOLD : February/March 2019

Posted by FP Transitions on Apr 10, 2019 10:26:03 AM

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

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

The Sell and Stay® Strategy

Posted by Rachel Beckwith on Apr 2, 2019 1:50:50 PM

The Sell and Stay™ Strategy

Everyone has a unique vision of their future; we’re all trying to forge a path with our careers to that end goal where we can take a big breath and simply enjoy the life we’ve earned. While we might have an idea of the specific journey we will take, it’s important to remain open to alternate routes and unexpected shortcuts along the way. The hardest step on this journey for most is that which takes them out of the professional world they’ve been a part of for many years.

Unique goals and unique journeys require a creative strategy. For financial advisors, the Sell and Stay® path offers flexibility and freedom for an exit from the industry. There are advisors in the industry who have built a team of advisors with next generation owners and have built an internal transition into the sustainability of their business. The majority of our industry, however, is still made up of single-owner practices. Luckily, Sell and Stay® offers them the option of a similar exit path.

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Topics: Succession Planning, Selling Your Practice, Exit Planning, Sell and Stay™

Preparing to Sell Your Practice

Posted by David Grau Sr., JD on Feb 28, 2019 1:08:03 PM

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The vast majority of today’s independent advisors only consider the option of selling to a third-party when it is time to retire or significantly throttle back as a last resort. Many advisors prefer a path with internal successors that allows them to exit gradually while building a strong, sustainable business. Many of these same advisors, however, come to realize too late that that process takes a fair amount of time, skillful execution, and next generation talent. As a result, a third choice emerges: that of attrition, which for most advisors is less of a choice and more of a default–keep working, enjoy the income, and let the practice slowly wind down if no better option emerges.

Attrition, however, involves a gradual drop off of clients, revenue, and value. It does not consider the future of all of the clients who have relied on their advisor for years. To avoid attrition, advisors should consider a sale to a third-party and exit in a professional and contemplative manner before any value is lost and clients are left to find a new advisor on their own. The brief exploration that follows can help to remove some of the mystery and many of the myths around the exit planning process and make it a higher priority choice. 

This external sale process is one of several “exit plan” paths, but it is often the best (and most lucrative) choice for certain advisory businesses–especially those who are otherwise facing attrition. Selling your practice to a third-party is the fastest of all the exit strategies, and something to consider depending on the circumstances and your needs. In most cases an external sale can produce a more liquid transaction with substantial, non-refundable down payments of 30% to 80% of the selling practice’s value. In the current sellers’ market, obtaining fair market value on very competitive terms is well within reach of the average selling practice owner. Setting up a practical and successful exit plan is about structuring a deal that works well for everyone.

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Topics: Selling Your Practice

SOLD : January 2019

Posted by FP Transitions on Feb 5, 2019 4:10:00 PM

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

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

SOLD : 2018 - A Look Back

Posted by FP Transitions on Jan 3, 2019 6:53:21 PM

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 : 

Eastern Virginia
San Francisco Area
Sacramento, CA
Columbus, OH
Dallas, TX
Baltimore MD
Houston, TX
Central Louisiana
San Gabriel Valley, CA
Southern Florida
Charlotte, NC 
Little Rock, AR
Raleigh, NC
Southeastern Florida
Cedar Rapids, IA

Kansas City Area
Boca Raton, FL
Lansing Metro Area, MI
Eastern Maryland
Southern New Jersey
Santa Cruz, CA
Minneapolis, MN
Denver, CO
Southeastern Connecticut
Northwestern Wisconsin
Oklahoma City Area 
Central Texas
Philadelphia Area
Eastern New York State
San Antonio, TX

New York, NY
Chicago Suburbs
Southern Louisiana
Western Washington
Central California
Los Angeles Area
San Diego, CA
Silicon Valley, CA
Central Alabama
Northeastern Illinois
North Dakota
Philadelphia Area
Central Oregon
Seattle, WA
Southern California

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

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

Course Corrections for Your Succession Plan

Posted by FP Transitions on Oct 11, 2018 9:42:48 AM

Course Corrections

Building a sustainable business and incorporating new talent into your ownership structure is a process that takes planning and monitoring. But it’s a process that–when done correctly–can yield incredible satisfaction, growth, and value. A process with so many moving parts including multiple parties and expectations is bound to see some bumps. Sometimes those bumps can necessitate larger course corrections in order to keep the plan on track.

There are a variety of situations that can cause a larger adjustment to your succession plan–whether they’re driven  by G1 or G2, positive or negative, preventable or not, and expected or not. Below is an excerpt adapted from a section of Succession Planning for Financial Advisors, written by FP Transitions Founder and President David Grau Sr., JD.

If Founder Plans Change

The whole purpose of a succession plan is to help your business outlive you, so count on this being a somewhat lengthy process. While some plans on paper may go out 20 or more years, they are implemented tranche by tranche, with planned opportunities for reassessment and course changes or adjustments. At a minimum, plan for annual valuations to monitor value, annual benchmarks using that valuation data to track operational numbers, and plan adjustments every five years or so. Depending on the size of the business, the number of owners, and the goals, some businesses and firms prefer more frequent maintenance so that the course corrections are more subtle.

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Topics: Succession Planning, Selling Your Practice, Sustainability

SOLD : September 2018

Posted by FP Transitions on Oct 4, 2018 2:11:03 PM

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

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

SOLD : July / August 2018

Posted by FP Transitions on Sep 6, 2018 7:00:00 AM

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

VIEW CURRENT LISTINGS HERE 

VIEW COMPLETE LIST OF PRACTICES SOLD 

LIST YOUR PRACTICE WITH FP TRANSITIONS

 

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

There Has Never Been a Better Time to Sell

Posted by David Grau Sr., JD on Jul 23, 2018 4:27:01 PM

There Has Never Been A Better Time to Sell

Over the past two and a half decades of working in this industry, as a regulator, an attorney and now at FP Transitions, I can safely say that I have never seen a better time to be the seller of an independent financial services or advisory practice. The commonly applied term, “a seller’s market,” barely does this observation justice. We are seeing so many supporting elements (price, terms, taxes, financing, demand, etc.) come together right now, that this may be the peak for sellers for years to come.

So here is my message: If you’re thinking about selling what you’ve built and handing the reins to a strong, next generation acquirer at any time in the next two to three years, you need to start thinking about these items today. You really need to understand why this may be the perfect time to call it a day and to sell for the full value you’ve built over the length of your career and to let someone else be responsible for the future. In a nutshell, here are the elements that are creating, perhaps simultaneously, this great opportunity at the peak of your career:

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Topics: Selling Your Practice, Deal Structure, State of the Market, Open Marketplace

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