Selling Your Practice: Determining the Value of Your Practice, Increasing its Value and Putting a Plan in Place
Valuing Your Practice It is estimated that over the next 10 years, nearly 70,000 advisors controlling more than $2 trillion in assets will retire. Yet, even though an advisor’s practice may represent his or her single largest asset, over two-thirds of advisors have not put into place an actionable succession plan. The failure to properly […]
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Selling Your Practice: Determining the Value of Your Practice, Increasing its Value and Putting a Plan in Place
Valuing Your Practice
It is estimated that over the next 10 years, nearly 70,000 advisors controlling more than $2 trillion in assets will retire. Yet, even though an advisor’s practice may represent his or her single largest asset, over two-thirds of advisors have not put into place an actionable succession plan.
The failure to properly plan may prevent advisors from extracting the full value of their practice when selling it. This could potentially undermine advisors’ financial well-being in retirement since 55 percent of advisors expect that at least half of their retirement needs will be funded using the proceeds from the sale of their practice.
The Succession Options for Advisors
Finding a buyer with the right cultural and business model fit may take years, which is why it becomes critical for advisors to plan succession well in advance of their anticipated retirement date. Advisors who are planning to sell their practice have three basic options.
This white paper, “Selling Your Practice”, examines strategies and tactics to optimize the value of your practice, including:
- HOW TO VALUE YOUR PRACTICE
- THE TYPES OF SUCCESSION PLANS, AND THEIR RELATIVE ADVANTAGES AND DISADVANTAGES
- THE DRIVERS OF VALUE
- STRATEGIES TO INCREASE THE VALUE OF YOUR PRACTICE
- A BLUEPRINT TO GET STARTED
