When Should You Sell Your Investment Advisory Firm?

Would you put a for sale sign in front of your house prior to having an idea of what you could get for it, without making improvements to enhance value before bringing it to market, or figuring out logistics of where you would move to and life after post-sale? 

You wouldn’t do it with your business either. The average investment advisory firm is worth more than three times the average house. Chances are good that your practice is one of your most valuable assets.

The day you sell your wealth management firm should be the culmination of a series of meticulously planned events, allowing for your exit to take place on your terms and for maximum value. The planning and execution leading up to the day you sell should be viewed as normal and ordinary business planning. It is normal and ordinary for owners to exit.  

The timing of when individual owners decide to exit is variable. Those who view selling as a singular event in comparison to a process will likely compromise their objectives and leave money on the table when they sell.  

It does not matter where you are at in your career, it is your responsibility to have a full understanding of the value of your RIA, its strengths, and opportunities for improved value, and to implement appropriate planning to accomplish your goals, not if, but when the time comes to ensure you exit on top. Don’t wait until the moving trucks show up.

AdvisorLaw can help with all aspects of your succession plan full circle, including valuation/swot analysis, developing a timeline, going to market, buyer sourcing and vetting, financing, deal negotiations, contracts, and closing.

Our attorneys and team have helped more than 2,000 advisors over the last few years. Some of our other services include enforcement defense, RIA formation, and compliance, as well as FINRA disclosure removal. Contact us for a free consultation.

Matt Durr
Director of Mergers & Acquisitions
(720) 458-3781

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