TRANSITION TALK

Considering Key Staff During the Sale of Your Business

Posted by FP Transitions on Jul 30, 2020 1:25:00 PM

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It’s hard to keep secrets in a small office. The rooms are tight, the walls are thin, and it’s just a matter of time before everyone knows everyone else’s business. Even when an owner has quietly decided to sell their practice, they should assume that staff members will eventually find out (if they haven’t already). In our experience, it’s best that employees hear the news from someone they trust: the owner.

Prospective sellers are often reluctant to speak to staff members about their exit plans because they aren’t sure how the selling process will pan out and they don’t know 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 can even help shape the structure of your sale.

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Topics: Selling Your Practice, Deal Structure, Buying & Selling, Building Your Team, "Buying, Selling, and Valuing Financial Practices"

Buyer Benefits of a Sell and Stay® Transaction

Posted by FP Transitions on Jul 22, 2020 10:59:00 AM

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The Sell and Stay® approach to selling a financial services business was developed by the professionals at FP Transitions to fulfill the preference of many sellers to gradually exit the business by giving up their ownership obligations while continuing to service clients and earn an income. This arrangement can be customized in a hundred different ways, but often entails an owner selling the majority–or all–of their ownership to a third-party buyer and remaining as an employee of the business for a set number of years (typically 3-5) before fully exiting.

Buyers who are open to this type of transaction not only access a larger acquisition pool, but can enjoy other unique advantages as well. You, of course, enjoy all the benefits of a traditional acquisition: immediate growth, available financing options, expansion into different areas and niches, and economies of scale. In addition, the acquisition can help you tackle some other areas of your long-term growth strategy through:

    • Client Continuity and Retention
    • Turn-key Practice / Office
    • Talent Acquisition
    • Reduced Training Costs
    • New Competencies and Service Offerings
    • Institutional Knowledge
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Topics: Acquisition, Deal Structure, Buying & Selling, Sell and Stay™

Components of a Deal

Posted by FP Transitions on Jun 12, 2019 6:00:00 PM

Blog - Components of a Deal - Refresh

Whether 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. After all, “fair” is a relative term. The question of fairness would be easy to answer if all deals were done the same way, but the reality is they are not. Nonetheless, there are still common attributes to most deals that can shed light and aid in understanding the underlying terms. This in turn helps both buyer and seller assess the reasonability of an offer. 

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Topics: Business Value, Deal Structure, Buying & Selling, Trends in Transactions Study, Transactions

There Has Never Been a Better Time to Sell

Posted by David Grau Sr., JD on Jul 23, 2018 4:27:01 PM

There Has Never Been A Better Time to Sell

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:

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Topics: Selling Your Practice, Deal Structure, State of the Market, Open Marketplace

Acquisition Tip of the Week #8

Posted by FP Transitions on Jan 6, 2016 1:00:00 PM

In our experience, the smoothest, most successful deals come from buyers and sellers who build a rapport and cultivate trust through transparency.

Don't forget to subscribe to get future acquisitions tip and the latest news right in your email

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Topics: Acquisition, Tip of the Week, Deal Structure

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