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Financial advisory owners have consistently found themselves reaching–or exceeding–expected gains from their business's sale. These owners benefited from a tried-and-true process of casting a wide net to find the best buyer and leveraging expert guidance–from list to close. Last year, sellers realized prices higher than their projected valuation and above those realized through self-sourced buyers.
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
Acquisition | Deal Structure & Documentation | Business Growth
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M&A marketplace activity for 2020, including how projections made in April stack up to the actual data and what we expect to see as we wrap up this unique year. Additionally, explore preparing for your ideal exit, maximizing the success of your deal, tapping into the open market advantage, and identifying the right buyer or seller for your transaction. Aired November 5, 2020
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Mid-Year Market Review 2020
A look back at transaction activity from the first half of 2020 and a look forward to some Q3/Q4 projections. Dive into our current transaction data while exploring predictions made and realized so far. We believed then–and continue to now–that our industry has the resilience to adapt and thrive.
Process Overview: Selling Your Practice on the Open Market
Selling your business is a big decision. You have many avenues for conducting your buyer search, but the majority of these strategies result in having to navigate the process alone. An open-market buyer search allows you to cast a wide net and find the perfect buyer while leveraging a team of experts to guide you through the entire process.
External Sale | Acquisition | Deal Structure & Documentation
Considering Key Staff During the Sale of Your Business
Sellers are often reluctant to reveal exit plans to their team because they aren’t sure how the sale will pan out or 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 impact deal terms, buyer selection, business valuation, and client retention
Deal Structure & Documentation | Next-Gen
Acquisition Case Studies 2020 [Webinar]
Explore deal details from several recently facilitated third-party sales, including traditional sales vs, Sell and Stay® transactions for various practice types (RIA, IAR, and RR). Discover commonalities in these sales as well as unique factors that impact deal terms. Realizing your ideal exit is all about planning and how you structure the deal.
Deal Structure & Documentation | Acquisition
Sell and Stay®: A Versatile Deal Structure [Webinar]
In today’s marketplace, many sellers are looking for a flexible offramp that allows them to realize value while continuing to work and earn income. Buyers are concerned about effectively servicing acquired clients and finding talent. The Sell and Stay® model is a powerful strategy to align the interests of both buyers and sellers. Originally aired May 5, 2020.
Preparing to Sell Your Practice
There are many exit paths for financial advisors. Unfortunately, too many advisors consider their options too late and have already started to slip into client attrition. An external sale is usually the best (and most lucrative) choice for these advisors. The process of selling to a third-party is the fastest of all the exit strategies, but there are still important considerations to keep in mind in order to find the best buyer for your business and ensure your clients are taken care of.
A Plan for Sellers Checklist
The decision to sell your business doesn’t just jump into your head one day. It takes months, perhaps years of consideration. Just as making the decision takes time, so does the actual process–and the preparation for it. This extensive checklist is designed to help guide you through your options, get your ducks in a row, and understand the realities of this detailed, and often emotional, journey.
A Plan for Sellers Workbook
This workbook encourages you to look at your business from many angles while being completely honest with yourself about the priorities and goals you have for the deal, the future of the business, and your own life once the sale is complete. As a companion to the Plan for Sellers Checklist, the workbook considers the intangibles and your personal expectations as you look ahead to what comes next.
Offers in the MailWhen considering the sale of your business it’s important to explore your options, define your priorities, and understand what your business is truly worth. Exploring the sale on the open market and leveraging expert M&A guidance can help you discover the possibilities and confirm whether you’ve got a fair offer on the table already.
Structuring the Deal
One of the most common mistakes that financial advisors make in the merger and acquisitions (M&A) space is to treat every sale or acquisition target the same way. In this white paper we discuss the importance of applying the appropriate approach, documentation, and deal terms to each unique transition.
Plotting Your ExitWhen should you start developing your internal or external exit plan? The short answer is: as soon as you can. Projecting your “workweek trajectory” and exit timeline can help you to determine your planning targets and allow you to make more informed business decisions like investing in various growth strategies, evaluating staff levels, and determining compensation.
Buying, Selling, & Valuing Financial Practices - M&A Guide
Our latest book, Buying, Selling, & Valuing Financial Practices, shows you how to complete a sale or acquisition while achieving the best possible terms for both buyer and seller. From valuations to mergers to bank financing, this book provides the perspective and skills you need to work through your deal professionally and efficiently.
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Impact of ConsolidationThe 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.
Components of a DealWhether you are buying or selling, it is important to understand what is being bought and sold and what expectations both the buyer and seller have of each other. Absent these details, it is difficult, if not impossible, to determine if an offer is fair. In this article we discuss the concept of shared risk / shared reward, how deal terms affect overall purchase price of a business, financing options, tax treatments, and common deal structures.
Deal Structure & Documentation | Acquisition | Tax & Regulatory Issues
Sell and Stay™: A Unique Path for Unique GoalsA Sell and Stay™ is an alternative path for an advisor who has unique goals and a desire for a career exit that doesn’t fit in any of the more common “exit plan” boxes. Falling somewhere between traditional merger and outright sale, the Sell and Stay™ path allows for more flexibility in your exit to accommodate your unique plans for the future. In this resource, we discuss the mechanics of the strategy, buyer and seller benefits, and important considerations.
Acquisition Wrap Up - CASE STUDY
When an advisor sells their business they have to find the right fit; the right person to take over their business and their client relationships. This case study details the seller's journey and the sometimes surprising steps of the process that have the most impact on their decision: first-impressions, communication, and third-party pressures.
The Dangers of Napkin Negotiations
In this industry, professional networking and client prospecting depend on your charisma and ability to connect beyond surface pleasantries. But when it comes to selling your business, it’s important maintain confidentiality, and avoid casual negotiations without proper documentation to avoid loss of value.
Deal Structure & Documentation | External Sale | Acquisition
A Non-Advocacy Approach to M&A Transactions
CEO Brad Bueermann explains how non-advocacy support for the transitions of financial practices is to the benefit of all parties. Buyer and seller with a close working relationship as they transition–for the welfare of the clients and for the transference of value of the practice.
One Chance to Do it Right - Case Study
The decision to sell a business is a difficult one for any advisor to make. After a lifetime of work to build your practice, and after years of earning your clients' trust, how do you turn the job over to someone else? This case study provides unique insights into the process and illustrates the opportunities–and the mistakes–that many sellers make.
Gaining Peace of Mind : Tips for Selling Your Practice
Advice from our Transactions Director for selling your practice: when to sell and how to sell if you want to receive full value for your business while choosing the best fit for your clients.
Industry Headwinds + M&A Data 2016
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.
Which Exit Path is Right for You?
There are many exit options and a variety of ways to execute them. Your unique situation and goals will determine which one is right for you. This post describes exit options, the situations each is most suited for, and how to plan properly for your chosen strategy to maximize value when you are ready to exit.
External Sale | Internal Succession
Issues Advisors FaceIndependent 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.
Internal Succession | Entity & Business Structure | Compensation
Determining Your Workweek Trajectory WorksheetThis worksheet will help you clarify and plot your own workweek trajectory and exit timeline. Forecasting your workweek trajectory and exit timeline can help you to determine your planning targets and allow you to make more informed business decisions like investing in various growth strategies, evaluating staff levels, and determining compensation.
Mergers: A Focus on the "M" in "M&A"
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.
Open Market Redemption- CASE STUDY
When it comes to finding the right buyer, the prospective buyer pool need not be large if it is filled with candidates that fit your criteria and are willing to meet your terms. This case study follows the story of one seller who was left at the proverbial altar by a qualified buyer, then found a better match–and an above market offer–using the FP Transitions open market system.
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Is Mediation for Your Deal a Good Investment?
Non advocacy support for a transaction ensures someone is looking out for the success of the deal itself. This article explores the misconceptions most advisors have about including an experienced, impartial intermediary in the negotiation of the acquisition or sale of a financial advisory business. Data and client experiences show that an independent mediator can help avoid frustrations, miscommunications, and unexpected last minute fees.
Roundtable Talk - Compliance & Acquisitionwith 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.
Tax Treatment of an Asset Sale
Choosing between asset or stock sale usually comes down to whether the transaction is external or internal. An asset sale is appropriate for an external transition. Each asset is treated differently when it comes to taxation, so knowing what to expect from your sale will save you from any surprises as the deal progresses.
Course Corrections for Your Succession Plan
Building a sustainable business and incorporating new talent into your ownership structure is a process that takes planning and monitoring. With so many moving parts including multiple parties and expectations, the process is bound to see some bumps. A course correction can come in the form of accelerating your plan, incorporating more owners, or, in some cases, falling back to Plan B. This post focuses on how to prepare for these situations and how to change course quickly, if needed, to preserve realized business value.
Compliance Audits & Practice Value 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.
Tax & Regulatory Issues | Valuation & Benchmarking | Acquisition