Acquiring the right practice. Every time.

Succession Planning

Acquiring the right practice. Every time.

Building a repeatable strategy for successful practice acquisitions.

As record numbers of financial advisors retire, advisors will have more and more opportunities to significantly increase their client base through acquisition. So whether you’re thinking about expanding now or a little further down the road, it’s a good idea to start thinking about what your acquisition strategy might look like.

In fact, the word STRATEGY can help you create a step-by-step plan of action:

  • Stabilize
  • Target
  • Red flags
  • Advertise
  • Test the water
  • Evaluate
  • Go – No/Go
  • Yield

STABILIZE – To get started on the right foot, make sure your own practice is stable and can be scaled for a sudden influx of new clients. Take steps to streamline, stabilize and document your processes so that every aspect of your business operates swiftly and efficiently, ensuring the acquisition will have minimal impact on daily routines.

TARGET – Carefully consider the practice you want to have in the future, and the kind of practice you should aim for to help you realize it.

RED FLAGS – Have a list of “red flags” that signal the firm you’re considering for acquisition won’t meet your criteria for acquisition. And don’t rationalize it away.

ADVERTISE – Spread the word that you are open to acquiring the right practice using LinkedIn and other social networking websites, your firm’s recruiters, industry conferences and community contacts.

TEST THE WATER – Once you find someone willing to sit down and discuss the possibility of selling you their practice, set up exploratory meetings to learn more about the seller’s philosophy, methodology and client service strategy. Don’t discuss price, value or terms just yet.

EVALUATE – Carefully review the seller’s practice, including individual client holdings and history, so that you’ll know as much as possible about what you are buying.

GO OR NO-GO – Once you’ve concluded the due diligence review process, both parties should make the decision to either move forward or halt the acquisition process. A letter of intent could be helpful in setting a timeline.

YIELD – Acquiring a practice is not as much about price as it is about yield. The return on your investment may take years to fully realize. Have realistic expectations.

Acquisitions can take a long time, so be patient while also being persistent. If you take time and get it right the first time, you should be able to replicate your success periodically as a means to grow your business. 



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