Business Growth Resources
Transaction data and trends from 2021 Q1 and Q2 paired with insights on marketplace realities. We'll delve into the concept of acquisition potential. Over the past few years, our extensive valuation and transaction databases show that advisory businesses can be successful in acquiring at higher levels than they think. However, most buyers tend to keep their sights limited and fail to realize that if they work to improve a few key areas they could reach higher. Aired July 13, 2021Compensation | External Sale | Business Growth | Deal Structure & Documentation
The concepts of succession and sustainability are inextricably linked–by creating one you find the other. Both are achieved by cultivating strong business foundations. This webinar explores structure vs. size in terms of value impact, defining core pillars of strength, using sustainability to uphold client trust, and focusing your efforts to elevate your business. Aired April 28, 2021
There are many factors that contribute to the revenue growth of your business, including: service capacity, number of clients and AUM, client demographics, fees, and, of course, the market itself. Understanding where your efforts have the most impact is key to maximizing growth. This presentation explores key revenue drivers through the lens of one practice's five-year journey. Aired March 2, 2021
Assessing where your business is now, creating specific goals for where you want to be, and implementing a strategic plan to get there is the best recipe for enhancing your enterprise. Be sure to leverage the right tools to discover key insights, define your short- and long-term business priorities, and set appropriate KPIs specific to your business size and priorities. Aired February 16, 2021
Building a diverse and complementary team creates business sustainability. Developing a strategy for recruiting, retaining, and rewarding top talent comes from understanding what areas of your business you want to enhance. Create a team that will elevate your business and leverage the compensation tools you have to keep it all growing. Aired May 19, 2021
The entity structure of your business can impact the way it's run, how ownership is succeeded, and how the enterprise is taxed. Choosing the right entity for your business allows for efficiencies in capacity, expenses, and ultimately, growth. This webinar explores how entity: works together with taxation elections to achieve your business goals, is critical for protecting yourself, the business, and your team, and supports onboarding the next generation of advisory professionals.
Understanding available compensation strategies and how they work together can help you can build and retain the right team for business longevity and growth. It's critical to balance role-based wages, performance-based bonuses, and equity-based profit distributions for all members of them–including owners–to encourage performance and create profit. What you pay someone is not as important as how you pay them. Aired February 2, 2021
Compensation systems in the industry are as varied as the businesses that use them. Balanced compensation tools help to maximize profitability, reward your team, and attract talented professionals.This webinar explores common compensation challenges and the varied solution sets to address them, including the incorporation of team-based compensation systems as well as synthetic and straight equity solutions. Aired June 30, 2021Internal Succession | Next-Gen Talent | Business Growth
A look back at a unique year of volatility and resilience for the industry and how it affected practice values, deal terms, and buyer/seller matches. This session highlights business and ownership attributes made for the most successful buyers in 2020, how to avoid the most common "deal killers," and where to start in evaluating your business potential and determining where to focus your business enhancement efforts. Aired January 19, 2021
As a next-generation professional with career sights set on ownership, you need to tap into your tenacity and communication skills to ensure a successful journey. There are certain situations that can turn into roadblocks unless you keep your eyes and ears open. These can be managed as mere bumps through forethought, transparency, and adaptability.
Look beyond any one owner’s career and focus on the creation of long-term, sustainable independence for the business as a whole. Discover core business foundations needed to support internal succession and long-term sustainability. Where will you focus your efforts to make the greatest impact on the growth and profitability of your business? Aired November 19, 2020
As businesses evolve from single-advisor, single-book practices to more sophisticated, multi-advisor enterprises, proper structure is important in order to associate value, growth, and profitability with the business as whole–rather than with an individual producer. In this webcast, we explore common organization structures in the financial services industry, and how building improper structures can degrade value and impede growth.
A strategically cultivated and nurtured team can align business goals, spark exponential growth, and solidify client confidence. This presentation explores important considerations for building your recruitment strategy, dates and resources for executing your search, and common recruitment and retention tools for bringing on new professionals. Aired October 22, 2020
There are two ways to make money from a financial services business: wages and profit distributions. But, there are four ways to build wealth from the same model: 1) Wages (including bonuses); 2) Profit distributions; 3) Equity income from sale of ownership stake; and 4) Equity value, or stock appreciation. Properly structuring cash flow and compensation are key to maximizing profit, encouraging business growth, and creating sustainability.
Your business is a living, breathing entity. Just like the investments you make on behalf of your clients, it needs to be nurtured and developed in order to realize maximum value. Annual assessments of your business value will help you become a better buyer, plan for your exit, and make important decisions to maximize business growth.
Actionable steps and considerations for protecting your business through continuity planning. Without a documented continuity plan you’re putting your business, your team, and your clients at risk. Use this checklist to help you select a partner, develop a clear and robust plan, and communicate your efforts to key stakeholders and clients.
A sustainable business is financially strong, has a long-term plan for continued growth, and is structured to last beyond the career of any one owner. Sustainability is about more than just the succession of ownership, it's about creating a business of trusted advisors that will carry on, continue to grow, and, most importantly, be there for clients when they need it most.
A look back at two decades of valuation and transaction data with insight into what traits and conditions have contributed to sustained business growth and higher values. Advisors and business owners should understand their firm’s position within the industry and be forward-thinking about where they want the business to be in the next 5 – 10 years.
In times of uncertainty, it is always wise to focus on what you can directly control. Whether we look at politics, markets, regulation, news, or the state of the industry, there have been (and always will be) many events outside of your control as a business owner. How do you deal with this constant noise? Recognize it for what it is and focus on the things you can control with direct action.
The separation between wages for work, performance incentives, and return on investment needs to be clear. The delineation is critical more a number of important reasons, including the ability to predict expenses, increase value, and create investability. Equity is a powerful compensation tool to attract, retain, and reward talent. It must be used with measured precision to achieve appropriate long-term results.
Today’s independent financial advisors face a daunting array of opportunities (and challenges). The key to harnessing ownership opportunities is to identify impediments before they arise and develop strategies for tackling the issues that present the greatest opportunities for improvement and growth. Discover actionable guidance for seizing ownership opportunities and facing challenges head on.
Virtual Meetings : Looking Your Best [Video]
Practical video guides for navigating the basics of virtual meeting software, connecting with your colleagues and clients, and how to look great doing it. These videos Includes tips on managing audio and video settings, screen sharing, setting up your space, lighting, and, of course, the importance of practice, practice, practice.
Recurring revenue is one of the most important determinants of value. Revenue produced through management fees, trails, or renewals is ongoing and reasonably predictable while transactional revenue is more difficult to predict. It is important to understand that the predictability of recurring revenue presents less risk to future earnings and has more impact as a value driver.
Balancing growth and profitability comes down to compensation structure and the equity pathways created. The profits generated through properly structured equity pathways are a catalyst for growth and the means to accomplish long-term strategic objectives including recruiting new talent, internal succession, and acquisition.
FP Transitions President & Founder, David Grau Sr., JD, dives into the three pillars of a strong advisory business and explores how each one is integral to the ongoing growth and sustainability of the enterprise. Working on the foundations of your business is an integral process that both encourages and supports growth in a perpetual cycle of success and profitability.
The average advisor faces a difficult and increasingly competitive industry. With increased regulatory oversight, technological advances, and the growing need to recruit and retain top talent, it has never been more critical to use benchmarking as part of your strategic planning process. Arming yourself with the best insights into your own business–as well as its place in the industry as a whole–will allow you to nurture business growth.
The M&A marketplace is becoming increasingly competitive. Businesses need a strong value proposition to step away from the crowd. Owners who have taken steps to build their enterprises are in the best position to leverage their unique business aspects to access more growth opportunities including acquisition and merger partnerships.
A Sell and Stay® strategy provides flexibility for a seller's exit. But what's in it for the buyer? Buyers open to this type of deal not only access a larger acquisition pool, but enjoy other advantages as well. A Sell and Stay® allows for greater client retention, increased efficiencies, and talent acquisition opportunities.
Building your business the right way is an important element to ensuring sustainability. Unfortunately, there are key elements many business owners forget to take into consideration – including compensation structure, equity pathways, cash flow, and entity set-up.
What should you focus on in order to meet your growth goals for this year and beyond? Areas like human capital, acquisition strategy, technology, image, and client demographics are all key to successful growth. Don't overlook these six avenues to accelerate your business growth.
A working capital loan can be used to boost business growth as you prepare your strategy whether it includes acquisition, internal succession, or otherwise. These loans are specifically designed with financial advisory businesses in mind with terms made it easier for long term growth.
Mergers create an opportunity for two or more practices to come together, combining staff, strengths, and cash flows, expanding virtually overnight into a larger, stronger business. In this white paper you will discover how different mergers can work for you plus a comprehensive strategy for executing a successful merger.
Owners–and prospective owners–need to accurately determine the value of their financial services practice, understand what drives that value, and learn how it can grow in order to effectively manage their equity and build an enduring business.
Whatever the goal, we have found a targeted terminology helpful for classifying and discussing financial advisory enterprises. It allows us to offer tailored advice to each and every client, and to be as precise as possible in addressing different areas of growth and sustainability. These industry-specific descriptions of "job/book," "practice," "business," and "firm" in this post are guides for determining where you are today, where you’d like to be five or ten years from now, and what will be required in the meantime.
Alternative growth strategies and where to find the right businesses and owners to partner with to achieve your goals. By thinking broadly, and more strategically, you open up your options and increase your chances for success.
The next-generation ownership of FP Transitions discuss their own experiences in taking the mantle to shape the team and future of the business. They explore hiring for cultural fit and potential value, the definition of “ownership mentality,” and how they might identify potential G3 leaders in the generation beyond their own.
Revisiting a thriving successor team six years later to check in on their accomplishments and the future growth they’ve set their sights on. Empowering a successor team that YOU trust fuels their drive to accomplish incredible growth, elevate the business, and carry a legacy beyond the foreseeable future.
Your practice is your most valuable asset, and by valuing it, you are empowered to grow, protect, and realize the value you have built. These are ten of many situations where it’s essential to have a current value and accurate understanding of your business, including external sales, acquisitions, legal disputes, and planning for the future.
Your business is more than just an income source. What are the differences between revenue strength and enterprise strength? How does each make an important contribution to the value of your business? Pay attention to ALL factors that drive current and future value to avoid closing off exit planning options down the road.
EMS Exclusive Resource
Too many advisors focus on revenue strength as the sole measure of their success, but creating and building enterprise strength is just as important for growing value. Maximizing enterprise strength depends on the selection of the proper entity for your business, the proper organizational structure within that entity, and the proper compensation structure for the cash flow of that organization.
with guest Colleen Jordan Hallinan, Qii Consulting
In this second Roundtable Talk with Colleen Jordan Hallinan of Qii Consulting, she shares ways to identify different personality types and work styles. Harnessing each individual's unique strengths creates a team that promotes the success of the business as a whole.
Independent financial advisors face an almost overwhelming set of challenges, but with challenges come opportunities. These opportunities and challenges are often interconnected and fall into areas of mergers & acquisitions, growth & profitability, talent retention, and succession planning.
Many advisory practices are not adequately equipped to grow at the rates they are striving for. Technology provides opportunity to improve this. Investing in technology has a demonstrated relationship to higher growth, more affluent clients, increased profits, and increased value. Cumulatively, strategically—and effectively—utilized technology can unlock a practice’s growth potential and profitability.
When it comes to understanding an "equity-centric" business model the structural details can be difficult to grasp. The parable of ship vs. liferaft will help to illustrate the problems many independent financial advisors face when trying to evolve their structures as they progress from a job to a practice, and ultimately, to a business.
You and the rest of the ownership team have decisions to make about the merger process itself, as well as decisions to make about the business you’ll create. These details should not be left for discovery and sorted out mid-process, but should be understood and planned for before implementing your merger strategy.
with guest Colleen Jordan Hallinan, Qii Consulting
In the last of our Roundtable Talks with Colleen, she shares the philosophies and process for her "after advising" enterprise: helping other advisors build stronger teams for greater success. She walks through some of the assessments and strategies that serve the core of her methodology.
with guest David Birnbaum, JD of Bates Group
Join Marcus and special guest David Birnbaum, JD, of Bates Group as they discuss the impact of compliance on business value, as well as the importance of internal compliance audits to stay ahead of any regulatory issues and correction periods that come with them.
Proper continuity planning is one of the most important, and most overlooked aspects in most financial advisory practices. This white paper covers the best practices for continuity plans - for practices of all sizes. Included are basic Dos and Don'ts, how often you should update your plan, and how to find a continuity partner.
The consolidation that we see every day are owners of stronger, sustainable enterprises acquiring smaller, one-generational practices about half their size. As the profession matures, practice owners are compelled to grow and improve—a very natural part of facing competition head on. But, eventually, time and energy begin to wane. As retirement, or the need to simply slow down, begins to appear on the horizon for single-owner practices, advisors are faced with few choices.
Key tips for writing a concise, but comprehensive communication to the seller via an inquiry. This post highlights different details to include, like education, designations, investment philosophy, future plans, and more. We also explores some common mistakes made by eager buyers that could be detrimental to their success in the listings process.
Creating a unified and sustainable business structure promotes a more successful acquisition strategy by: improving enterprise strength, increasing business value, facilitating growth, and laying the foundation for retention of new advisors and clients. Successful and enduring enterprises–in all industries–realize that a specialized and centralized business structure makes it easier to solve unfamiliar problems with innovative answers.
In this webcast President and Founder David Grau Sr., JD and VP Eric Leeper, CFA explore some recent industry issues. They cover current M&A database findings, the concept of attrition and what it means for your business' long term value, and how working towards a concrete plan will help you fare the headwinds–or avoid them all together.
Enterprise Consulting is an end-to-end business growth solution. It is designed to adapt to your needs, your timeframe, and your goals to provide an effective and cost-efficient solution. It is a unique approach designed for a unique profession.
Unexpected circumstances forced Floyd to quickly reduce his work hours at his firm, Cornerstone Wealth, from 45 to 20 hrs a week. Too young to retire, Floyd incorporated existing staff into the ownership structure to ensure his business not only survived, but thrived. In this client success story the team discusses the transition and their new ownership mentality.
EMS Exclusive Resource
Recruiting and developing a skilled team of advisors can be a daunting challenge for the owner of a financial advisory practice. Doing that, however, is only half the battle. Once you’ve chosen and trained your next generation how do you hold on to them? How do you keep them from opening up shop across the street? Create an ownership track and make the opportunity available to the best on your team.
When it comes to securing your legacy and choosing your successor, instead of looking for an entrepreneur like yourself, shift your search to intrapreneurs. Intrapreneurs are more likely to wear one or two specialized hats. They can see the "big picture" and demonstrate an ownership mentality. They are focused on driving improvement within a company rather than starting up a new one.
with guest Colleen Jordan Hallinan, Qii Consulting
In this first in a series of special Roundtable Talks, Colleen talks about her own journey to life after advising, and how finding the right people to take over the business made all the difference.
FPT Elite Client Consultant Kem Taylor shares her thoughts on Caleb Brown’s Book Successful Hiring for Financial Planners: The Human Capital Advantage. She highlights the most impactful sections and how advisor/owners can best utilize Caleb’s advice to grow their own staff, and with it, the business as a whole.
Advisors commonly think of a merger as the statutory combination of two entities, but it’s better to think of the merger process as the combination of two or more advisors’ strengths, client bases, and cash flow streams. The transactions boost productivity and create tax benefits while reducing or eliminating weaknesses and inefficiencies. A merger can facilitate many growth and business goals including: integrating internal succession, facilitating acquisition, and expanding reach.
with guest David Birnbaum, JD of Bates Group
In this second of our Roundtable Talks series with Bates Group, David Birnbaum, JD, talks about the importance of getting to know a business and its people in order to effectively help them keep up with compliance.
FPT experts discuss the process of going from next-gen advisor to next-gen owner. They discuss the importance of tapping into individual talents to create a stronger business, as well as the importance of clear communication between generations for a successful integration.
Next-generation advisors are in a unique position to leverage their generational experiences and opportunities that influence business value to carve out their ideal career path. The demand for next-generation talent continues to increase as longevity, continuity, and staying competitive become top priorities for many financial advisor-owners.
EMS Exclusive Roundtable Talk
FPT transactions experts Rod Boutin, JD and Ericka Langone, JD discuss common areas of governance and control that many owners (existing and future) have concerns about during any (re)structuring or additions to the ownership of a financial services business.
Our Rod Boutin, J.D. and Ericka Langone, J.D. discuss the uniqueness of each merger transaction using three real life examples from the FP Transitions portfolio. The examples range from a complex 3-way, multi-owner consolidation, to a more common combining of efficiencies and resources, to a planned merger as continuity for two small businesses.
EMS Exclusive Resource
Marcus Hagood and Douglas Kreft, focus on the opportunities robo advisors present for financial advisors to emphasize their value proposition and expand their client bases. With investment management technology at investors’ fingertips, are we seeing a precursor of a larger threat to advisor services in coming years?
with guest David Birnbaum, JD of Bates Group
Monitoring compliance and keeping up with regulations is important for the operation of any financial services business. In this first of our special series with Bates Group, Join Marcus Hagood and special guest David Birnbaum, JD to discuss how compliance impacts an acquisition and the impact of current events on compliance and the industry.
EMS Exclusive Resource
FP Transitions' valuation experts, Ryan Grau, CVA, CBA and Warren Burkholder, ASA, MCBA, CBI, go in-depth into the differences between valuation and appraisal, the importance of having a certified valuation analyst, and how the purpose of valuation informs the methodology for the most accurate value.
Experts Rod Boutin, JD and Ericka Langone, JD explore preparation beyond determining value. They highlight the importance of reconciling the expectations and goals of all parties, the considerations that may warrant an assigned premium share value, and the benefits of a holistic approach to the entire merger process.
A large percentage of advisory practices have built in “fracture lines” by using a revenue-sharing arrangement to compensate multiple professionals in one office. In the independent sector your focus should be on creating a team of advisors that work together—compensated for contributing to an supporting a single enterprise—rather than individuals building their own books and leaving the practice with the clients and cash flow they’ve generated.
The buyer pool is still vast and sellers have become more selective about who takes over their business. It's about fit, not just who has the highest bid. As a buyer prospect in this rapidly changing and growing industry, trying hard and trying often is not enough. In this excerpt, we highlight the patience, drive, and improvement required to be a successful buyer.
This Roundtable Talk explores the internal succession and describes how both the succession process and business growth can benefit from multigenerational experiences and knowledge from all owners. Additionally, we look at other factors that help the succession planning process, including helping next generation advisors understand the benefits and responsibilities of ownership.
Whether you're considering selling your business externally to the best qualified buyer, or internally to a team of proven successors, bank financing solutions can provide powerful tools to reshape or accelerate your plans.
An overview of what information is covered in our EquityBuilder® Benchmarking Report and why it’s key to building your business. An annual EquityBuilder® Benchmarking Report is included in the Equity Management System® (EMS) Grow membership.