TRANSITION TALK

Selling Your Practice, One Chance to Do it Right

Posted by FP Transitions on Aug 30, 2023 9:30:00 AM

Blog - Selling your practice, One chance to do it right

The decision to sell a financial services practice is a difficult one for any advisor to make. After a lifetime of work to build your business, and after years of earning your clients’ trust, how do you turn the job over to someone else? Will they work as hard as you have? Will they care as much as you do? Will they always put your clients’ interests first? When selling your practice, you get just one chance to do it right. The following case study provides some unique insights into the process and illustrates the opportunities, and the mistakes, that many first time sellers make:

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Topics: Selling Your Practice, Acquisition, M&A, Deal Structure, Buying & Selling

10 Reasons to Value and Monitor Your Practice

Posted by FP Transitions on Aug 4, 2023 9:50:31 AM

 

Experienced business owners recognize the importance of tracking and monitoring their firm's value over time. They know this business is one of their largest assets, and by measuring and monitoring it, they are enabling its growth, protecting its value, and ensuring a sustainable - and profitable - future. Understanding value and monitoring it over time is the starting point for every business plan: organic growth, acquisition, succession, talent recruitment, everything.

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Topics: Continuity Planning, Succession Planning, Continuity, Sustainability

TREND REPORT: More G2s Seeking Ownership Earlier

Posted by FP Transitions on Jul 26, 2023 11:34:10 AM

Trend Report Blog

M&A Gusto Continues: FP Transitions Rallies to Meet Demand

Independent advisory firms continue to tap FP Transitions for valuation, transaction support and non-advocacy consulting on mergers, sales and acquisitions.

National wealth management consulting firm, FP Transitions, reports a continuous surge in independent financial advisor mergers, sales and acquisitions. With deal flow rivaling that of last year, the company adds another round of lawyers, analysts and industry consultants to its M&A and consulting teams. With more than 70 inquiries for each opportunity, FP Transitions’ data shows market demand continues to outpace supply, and is further fueled by a growing appetite of next generation owners (G2s) engaging in ownership earlier than prior generations.

This momentum of G2s seeking ownership paths has created greater opportunity in the independent space, and FP Transitions’ CEO and principal, Brad Bueermann, cites a ripple effect across the industry. “For decades, FP Transitions has focused on preparing both owners and next generation owners to establish, build and transition firms from one leadership team to the next. What we’re seeing now is a culmination of those efforts meeting the essential demands of 100,000 advisors gearing up for retirement by 2042.” Of these retiring advisors, Cerulli data indicates nearly 45% are planning an internal transfer of ownership to an employee or family member.

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Topics: Succession Planning, Announcements, Buying & Selling, State of the Market, Press Release, Press Releases

Price, Not Value, Is a Product of Negotiation

Posted by FP Transitions on Jul 24, 2023 9:00:00 AM

 

Price is usually the most difficult hurdle for buyers and sellers to overcome. The value of a business is different for each party participating in a transaction and is based on opinion and the specific set of circumstances for each individual. Price, on the other hand, is the number at which the transaction is executed. Yes, value informs price, but it is not the only influencer. Price is also the result of good faith negotiations between buyer and seller. While negotiation does not necessarily impact each party’s perception of value, it allows for dialogue so that both sides arrive at a price where the value for each individual overlaps and a mutually beneficial deal can be struck.

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Topics: Selling Your Practice, Acquisition, M&A, Business Value, Deal Structure, Buying & Selling, Mergers

Lending for Successors: What Advisors Need to Know

Posted by FP Transitions on Jul 24, 2023 9:00:00 AM

 

Blog - Lending for Successors What Advisors Need to Know

If you are preparing to become the successor of an RIA firm, you may have a lot of questions and concerns about how to negotiate the best deal and what lending options are available to help you finance the succession.

To help you answer these questions, Alicia Chandler, President and Susie McEuen, Strategic Markets Vice President of Oak Street Funding sat down with FP Transitions’ Director of Valuations, Aaron Wells, and CFO, Eric Leeper, to share their insights and tips on what successors need to know. 

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Topics: Continuity Planning, Succession Planning, Deal Structure, Continuity, Sustainability

Lending Advice from FP Transitions and Oak Street Funding

Posted by FP Transitions on Jul 6, 2023 9:00:00 AM

M&A Playbook Header

What we wish everyone knew about succession planning.

We sat down with lenders, analysts and valuation experts to talk about what really happens in succession planning. Four seasoned professionals weighed in, and the answers are remarkably candid.

Many advisors forget to view their financial advisory business as their largest personal asset. Focusing on clients is imperative, but caring for your firm is also an exceptionally important part of this. Leveraging experts like FP Transitions to develop a robust and tailored succession plan means hiring a team of professionals who know every. single. thing. about succession planning for financial advisors. 

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Topics: Succession Planning, Acquisition, Financing, Transition Plan, Valuation & Appraisal, Transactions

Are You Ready for Ownership?

Posted by FP Transitions on Jul 5, 2023 9:00:00 PM

 

It’s the dream scenario for a lot of financial professionals: business ownership. It sounds great, right? It means you get to make important business decisions, make more money, be the boss, and enjoy the freedoms that come with it.

It’s all true, but there is so much more to being a business owner. Your investments of time, energy, and money can come back to you in tremendous profits and satisfaction. There are also obligations that go along with the perks. Riding the highs and lows, responsibility for your team, and getting involved in every aspect of the business. 

Building a business from scratch takes patience, resilience, and risks. Earning a place in the ownership circle of an existing business takes focus, commitment, and ingenuity. But the real question is: Are you ready to be an owner? 

FPT RESOURCE: Rights and Obligations of Equity Ownership

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Topics: Multi-Generational Ownership, Next Generation, Leadership, Business Operations

Continuity is Not Succession

Posted by FP Transitions on Jul 3, 2023 9:00:00 AM

 

Often used interchangeably, the terms Continuity Plan and Succession Plan refer to very different business planning elements. Continuity plays an essential role in defining what happens upon a “triggering event”– sudden absence, disability, death or otherwise, while succession refers to an intentional plan that brings multiple generations of owners into the business, typically over 10-15 years, to carry it forward for decades to come. We refer to this goal as sustainability.

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Topics: Continuity Planning, Succession Planning, Continuity, Sustainability

Defining Your Enterprise: What Are You Building?

Posted by David Grau Sr., JD on Jun 20, 2023 10:30:00 AM

Blog - Defining Your Enterprise What are you building (Refresh Banner)

For our clients, the courses of action may differ, but growth is the number one priority. The goal could be to grow and then sell it to a third party for maximum value. Alternatively, the aim could be to create a sustainable enterprise capable of supporting a gradual transfer of ownership, leadership, and responsibility to an internal successor. 

Many advisors arrive on our doorstep using terms like “silo” and “ensemble” to describe to us what they believe they have built. However, these terms merely describe the organizational structure, which is just one facet of the strength of an independent advisory enterprise. These terms are not sufficient for diagnosing ALL structural elements needed to support a sustainable, profitable, valuable enterprise in this highly-regulated and sometimes complex industry. 

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Topics: Business Growth, Sustainability, Enterprise

Solutions to the Advisor Marketing Yo-Yo Effect

Posted by FP Transitions on Jun 19, 2023 10:00:00 AM

JUNE BLOG - BANNER - SOLUTIONS TO THE ADVISOR MARKETING YO-YO EFFECT

End the Cycle: How to Make Marketing a Constant Business Generator

Marketing powers growth, which is why it’s a priority when we’re in need of more business. But over time, with great marketing, business starts booming. That’s when many advisory firms begin to pivot to client service and satisfaction, letting the lead generation campaigns run their course. When the funnel starts to dry up, we dig back into early-stage marketing on social media, email campaigns, more lunch meetings – only to hit pause once a few more clients trickle in. Enter the vicious cycle of the start-and-stop campaigns. We get it, you cannot do it all.

But what if I told you there was a way? Would you be interested? We’re breaking down the challenges and matching you with immediate solutions. Let’s go!

CHALLENGE #1: In the Moment Decisions

Something triggers a renewed marketing focus. It could be anything, but more commonly this can come from an increase in capacity (new team members, better technology, clients on target and requiring less focus) or it could be due to a need for more revenue (profit margins are down, loss of a long-time client, more clients entering retirement). Whatever the source, you start looking for ways to boost revenue.

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Topics: Education, Business Growth, Business Operations, marketing

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