Yet, another choice for advisors is the do-it-yourself approach. For this, there are a number of resources available. Advisor Xchange (http://adviserxchange.com/buy-or-sell-a-financial-advisory-practice.html), not to be confused with Advisor Exchange (an account aggregator), offers a number of services to help advisors buy and/or sell a practice. A key feature of the adviserXchange M&A process is that it's designed to help compatible advisors find each other when they're ready to buy or sell a financial advisory practice. They can also provide assistance with the following key activities:
1. Determination of a potential valuation range for a given practice
2. Negotiation of the final purchase price and other key terms affecting the transaction
3. Coordination of due diligence and closing documentation
Perhaps the best known of this type of company is FP Transitions (http://www.fptransitions.com/). According to their Web site, FP Transitions claims to be the nation's leading provider of equity management, valuation, and succession planning services for the financial services industry, and operates the largest open market for buying and selling financial service practices in the U.S. FP Transitions has expertise in practice valuations, continuity planning, practice benchmarking, strategic consulting, performance coaching, succession planning, entity formation and maintenance, internal ownership track setup and management, and mergers and acquisitions. For those looking to handle a sale, purchase, merger or succession plan on their own, either of these two could be good starting points.
David L. Lawrence, Ph.D. is the Co-Founder and President of Global Practice Network, a technology and consulting firm that provides financial practices, broker-dealers and independent firms with comprehensive, profit-driven efficiency consulting, technology solutions and resources. For details, visit www.globalpracticenetwork.com.
