You are just a few easy steps away from succession and retirement, as you define it!
Step 1: Valuation (this can be done before or during your process)
When selling your practice you must have a business valuation done. We recommend the use of a reputable valuation firm, like F.P. Transitions, or John Furey Advisor Growth LLC. These experts will walk you thru a process to clarify the hidden value in your practice. These third party valuations reports are very useful for you and your purchasers.
Step 2: Determine Our Fit
The most important component in a successful transition is determining whether there is a good fit for your firm, your service staff, and your clients. Fit is a relative term and must be defined by the parties involved. We have identified some critical questions to ask to make it easier for you to determine a good fit: What is the primary culture of the firm and its staff? What is the investment style? What are the areas of specialization? What are the team personalities?
Step 3: Due Diligence Process
Once we collectively decide we may have a fit, it will be necessary we complete due diligence on each other. At this point we evaluate logistics, your current broker dealer, and/or necessary custodian changes. We will check your current licenses, credit history, and CRD history. Both parties will sign a non-disclosure agreement and we take a deeper dive into understanding your clientele, processes and procedures.
Step 4: Design an Agreement
We will prepare an agreement based on your needs and continuity planning requirements.
Step 5: Celebrate Our Agreement
Once we reach an agreement and sign our deal together, we write you a big check and we celebrate your freedom as you have chosen to define it. It’s a day of celebration, and for you a new beginning!