Business Broker for Advisory Firms San Diego – Steps When Selling an Advisory Firm

As you get ready to sell your advisory firm, the most important thing to do is to get your house in order. If you are years from selling your practice, you should focus more on maximizing its value. Working closely with a business broker for advisory firms San Diego recommends will help you cover every aspect of your business and avoid mistakes that can keep you from selling. In this post, we will be focusing on the steps you have to take when getting your advisory firm ready for sale.

Determine the value of your firm

The source of revenue for an advisory firm can impact the sale price drastically. If your firm has recurrent revenues, it will have the highest value. Commission-based firms bring a lower sale price. However, irrespective of the structure of your firm, an independent business broker for advisory firms San Diego trusts will be able to perform a business valuation and an appraisal. It is always good to learn about the value of your firm while you still have plenty of time to make adjustments.

Decide if you want to transition internally or externally

Your business broker will ask if you want to sell to an unrelated third party or an internal advisor. Each of these two options has its pros and cons. Identifying the primary goal of selling will help make a more informed choice. For example, selling to an unrelated third-party will be ideal if you want to get the highest sale price. However, if you want a seamless transition for your clients, an internal advisor or family member will be the perfect buyer.

Focus on building an enterprise, not a practice

One of the reasons many advisory firms fail to sell is because their success is tied to the owner. Once the owner departs, the practice may fail. As a result, buyers stay away from firms that depend too much on the owner. To prove to potential buyers that the momentum of your firm will not dwindle after the transfer of ownership, you need to create a management team and outsource technology to build a strong structure that encourages buyers to trust your firm’s growth projections. Your firm must also focus on its most profitable activities.

These three things will make it easier for you to sell your advisory firm in San Diego. However, while you may feel competent to sell independently, you should consider that selling a business is a whole new animal. It is nothing like running your firm. That is why you should consider enlisting the help of an independent business broker for advisory firms in San Diego to handle the sale.

Business Broker for Advisory Firms San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

Determine the value of your firm

Decide if you want to transition internally or externally

Focus on building an enterprise, not a practice

The Sales Process