Author Archives: Financial Advisor
Financial Advisors Are Still Failing to Plan for Succession
He who fails to plan, plans to fail. -proverb There is little doubt that this axiom resonates with many financial advisors. Financial advisors understand that careful planning is key to helping their clients meet their financial and retirement goals. Yet, many … Read more…
Selling Advisory Practice – Equity In Return For a Merged Book of Business
Overview: Solo Advisors who are looking to extract their business value often feel they have a dilemma if they don’t currently have an internal succession candidate. Do they hire an employee to develop into their eventual buyer or choose to sell to … Read more…
Unearthing Value In A Financial Advisory Firm
Overview: The professional valuation primarily focuses on the cash flows and profitability in the advisory firm being appraised. An equally important consideration is the specific value characteristics of the subject business and what additional worth those positive aspects will bring forth for your … Read more…
What Are You Worth?
Before you look at multiples, figure out where all your firm’s value lies. FEW SUBJECTS ARE AS CONFUSING AS assessing the monetary value of a financial practice. Many advisers believe that they can follow a simple rule of thumb based … Read more…
Buyer’s Due Diligence Guidelines
Some additional important aspects of the due diligence processes are: Buyer’s Due Diligence Guidelines + Understand the financials, including the breakdown of revenues and how they are generated. How much is based on recurring and non-recurring? Have recent anomalies occurred, such … Read more…
Top 10 Reasons Why Acquisitions Fail
Neither the buyer nor the seller has a plan, and they have been mismatched The seller’s need to have a “flawless deal” wears out the less-than-patient buyer (sellers only do this once, and they feel they can’t make a mistake) Buyer’s … Read more…
6 Major Steps in Preparing for the Acquisition of a Financial Practice
Develop specific acquisition objectives, strategies, and expectations as they pertain to your individual circumstances. Make sure you have your funding strategy in place before you start the process of talking with any potential candidate. Position yourself in the environment that best exposes … Read more…
How to Acquire a Financial Practice
Overview: When properly approached, acquiring a financial practice can be an optimal growth strategy for early and mid-career financial advisors. Some late career advisors may also find the strategy feasible for increasing the overall value of their business prior to … Read more…