There are several reasons a financial advisors may consider selling his practice:
1. Wanting to retire.
2. Frustrated with increased regulations.
3. No longer able to make adequate compensation due to increased costs.
4. Increased competition from other advisory firms.
5. You need a succession plan.
There are many things to consider when finding a potential buyer for your practice, which include:
1. The valuation of your financial practice.
2. How do you structure the deal once the price has been agreed on.
4. The location of the buyer.
5. How will the practice be converted over to the buyer?
6. What is the reputation and FINRA track record of the buyer?
7. What is the financial capabilities and credit worthiness of the buyer?
8. How do you draw up the contract between the buyer and seller?
As you can see, there are many questions to be answered when selling your financial practice. Research needs to be done and due diligence completed.
If you are either considering leaving the business or are nearing retirement, and would like to sell your practice, or help you set up a succession plan.
We can introduce you to professions who will help you to evaluate the cost of your book and also make introductions to "buyers". They will help you to do the due diligence needed to complete the buy/sell arrangement. We have financial advisors who are well capitalized and are interested in purchasing financial practices.
If you are considering selling your practice, or if you are looking for a succession plan, we would love to speak with you. Please call for a confidential conversation at 978-312-1656.
