There comes a time when you have to let go of the firm you have grown for years. When this time comes, your top priority is to sell for maximum profit. Working with an experienced business broker for advisory firms Orange County trusts will help you realize this goal. However, there are some additional things you will have to do to sell fast and for the right price.
Know the value of your firm
To set a good selling price, you need to know how much your business is worth. For this, you will need the input of a business broker for advisory firms Orange County depends on. The broker will perform a business valuation that helps you understand your business’ true value and the best selling price. The valuation report will also make you aware of your firm’s flaws. You can use this information to improve your business.
Remove yourself from operation
The best advice you can get when getting ready to sell is to create an enterprise and not a practice. Independent advisors tend to overemphasize the unique value they bring. While this is good, it will be problematic when it is time to sell your practice. Business buyers know that if they buy a firm over-dependent on the owner, its momentum will be lost as soon as the owner leaves. Therefore, as you get ready to sell, focus on removing your name from the firm’s door. You need to train a team to take over your responsibilities, document your systems and processes and ensure the business can thrive in your absence.
Review client demographics
Investors want to acquire a business that will continue thriving years after buying it. That is why a firm with younger clients is more admirable than one with older clients. Younger clients are in the accumulation phase, whereas older clients convert their assets for distribution. As you get your firm ready for sale, focus on acquiring younger clients.
While it is never too late to develop an exit strategy, the sooner you start, the better. When you have an exit strategy in place, you will be able to know when to sell your firm and the type of buyers to reach out to.
Selling an advisory firm is not as straightforward as you might think. You need the input of an experienced business broker to help you make the most of what you have. Find a broker with a high success rate selling advisory firms like yours.