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.
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
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LLC vs. Corporation. Which entity structure fits your goals?
Understanding your specific needs and specific goals is an important first step of the entity-building process. As Rod Boutin, JD, General Counsel at FP Transitions outlined in a recent webinar, “it is important that we build an entity that clearly identifies and promotes your attainment of those goals. Done right, an entity is a tool to align with your goals.”
Topics: Succession Planning, Organizational Structure, Business Growth, Tip of the Week, State of the Market, Exit Planning, Next Generation, Sustainability, Wealth Management, Valuation & Appraisal, Business Operations
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...
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
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KPIs, or Key Performance Indicators
During a recent webinar hosted by FP Transitions, several attendees had questions about KPIs. Marcus Hagood Director of Equity Management System at FP Transitions, and Mike McKennon, EMS Consultant at FPT, had previously hosted a webinar on KPIs, and many of those key points are featured in the following post.Knowing the KPIs
The industry is flush with discussions of KPIs. Surely, you’ve heard the term before, or perhaps seen these indexes described as performance metrics, key variables or key success indicators. At FP Transitions, we use the term Key Performance Indicator; but ultimately, the data these terms convey is the same. KPIs are a unit of measurement leveraged to help you determine where your business is at, where you want to go, and will ultimately provide you with a road map of how you should proceed on your journey.
Topics: Webcasts, Business Growth, Tip of the Week, Deal Structure, State of the Market, Sustainability, Benchmarking, Valuation & Appraisal, Business Operations
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.
Topics: Selling Your Practice, Acquisition, Buying & Selling, State of the Market
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.
Topics: M&A, State of the Market, FPT in the News
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:
Topics: Selling Your Practice, Deal Structure, State of the Market, Open Marketplace
At FP Transitions, we’ve been valuing financial advisory practices and facilitating their transitions on the open market for almost two decades. In that time we’ve amassed the industry’s largest, most comprehensive database of financial advisor data. This year’s data tells the story of a robust Mergers & Acquisitions market despite industry uncertainties.
This year’s M&A webcast looks back over the last five years of advisor data to bring you a new perspective on the M&A market and the future of your business. Preview the presenation below, or click here to watch the full video.
Topics: Succession Planning, Selling Your Practice, M&A, State of the Market, Exit Planning
In an industry where the ability to adapt is crucial, it speaks volumes that the current volatility is making many financial professionals nervous. New standards, laws, regulators, and even technology threaten to make a huge impact on single-owner practices and multi-generational firms alike.
Practices who have planned ahead and spent time bolstering their revenue and enterprise strengths are likely to fare better, and those have put off building are bound to feel the effects of these headwinds more acutely.
In our newest webcast, FP Transitions founder and CEO, David Grau Sr., J.D., along with our VP of Research and Analytics, Eric Leeper, discuss:
Topics: Succession Planning, Selling Your Practice, M&A, State of the Market, Exit Planning