How to make money selling you financial advisory business


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Are you coming up to the retirement phase? Maybe you have simply decided that now is the time to move on? No matter what applies, if you want to sell your financial advisory practice, there is a lot to take into account to ensure the transition is smooth and handled correctly. Below, we have outlined some top tips to give you a helping hand. If you follow the steps that have been outlined, you will have a much smoother transition when you decide to leave your business and you pass it onto someone else, and you will make more money in the process too.

  •    Get rid of any problem clients – Now would be a good time to get rid of any clients that are extremely difficult or demand an excessive amount of your time in relation to the revenue they generate. This will leave your buyer with an easier group of clients to work with, which can actually add value to your firm because it streamlines your base of clients.
  •    Increase your fees – You should also consider the prospect of raising your fees. This is a good way to enhance your future revenue stream without you having to put in any extra effort or time. This is particularly recommended if you have boosted the level of service provided to your clients yet you have not increased your rates in a long time.
  •    Invest in your current clientele – This is one of the best and most obvious methods for enhancing your practice’s value. You can grow your business and develop deeper relationships with clients by spending time with them outside of the office. Leisure activities, such as playing golf or fishing, can cement your position in the lives of your clients, which can in turn lead to stable future revenue from them.
  •    Ensure your employees are part of the deal – A great way to make sure that the transition process is smooth is to make arrangements for your current employees to remain on under the new owners. In order to entice employees to stay, you may need to put a type of guarantee into the transaction. However, it is likely that most buyers will want your employees to remain, as this makes their life easier and ensures the business continues to succeed.
  •     Make sure your business is prepared for the future – You may not be concerned about the future because you are no longer going to be at the business. However, ensuring that your company is prepared for the future is critical in terms of attracting business owners and extracting the highest sale price. This New Direct Lending whitepaper from bfinance can give you a good idea regarding how the lending sector is moving forward. You can find similar papers for all segments of the financial advisory sector.
  •    Sell to one of your employees – This is definitely an option worth considering, as it is usually the easiest way to transition out of your company. This means that you do not need to introduce your clients to someone new nor do you need to transfer their assets. This is why succession planning is imperative, as you can identify those that have the capacity to take over your business.
  •    Capture the transfer of wealth – Last but not least, this point is especially important to financial advisory firms that are largely made up of older clients. You need to make sure that you can supply the interested party with a source of revenue in the future that will in turn boost the sale price. For instance, if you have a lot of clients that have life insurance, you should encourage them to get their beneficiaries to open an account with you before you sell your firm.

We hope that this guide has given you the advice you need when it comes to selling your financial advisory business. There is no denying that there is a lot that needs to be considered. Selling any type of company is a long process and it is one that needs to be taken with care if you are to get the maximum profit available.


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