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Additional Posts in Succession Planning: Buy/Sell Practice
Www.joinsfm.com. We are a firm based in Central Florida. Also have branches in Ohio. If you are looking to join a good independent practice that has a guaranteed succession plan......check out our website. 34 years in business and rank in the top 5 largest financial planning firms in Central Florida. Check is out.
Anyone in metro DC looking to transition out?
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I have a colleague in Memphis that may be interested. Can I give her your contact info?
Good tips. Thank you!
The advisor at my BD offered 150k only. I feel this is too low especially that he doesn't need to re-paper or anything. The BD can just reassign him to the accounts.
Did you see the Waddell guy above?
Not sure how to get your info. Give me a call if you're still looking to sell 504.517.2468
Wish you luck!
Would you consider out of state RIA?
I would like to talk. 765-247-2423
I prefer someone who live in state. Easily accessible and can continue to meet clients face to face and on a regular basis. Thanks
If you have office space that you are willing to sell/let us take over the lease so I can put someone in that exact spot, I’d be interested.
No space will be available when I exit. I work at a broker dealer division office
If you are in a BD office, why not just sell to the person in the office next to you? You would get far more if the rep doesn’t need to repaper (just change of rep code), clients already are used to going to that office (why I asked if you had space that I could take over). Both make the book more attractive to buyers making it worth more. Also, since the clients won’t see any new contracts, you could just pick up and leave the day after the deal, no need for a stand by.
Managing Partner, you are 100% right. One advisor in our division is interested but not willing to pay more than half of what the book is worth. Two other advisors are interested but their licenses don't match mine. Do you think it is worth it to sell internally for half what the book is worth?
Zachary Gorres, yes please.
It depends. I think the starting price would be 2x 12 month GDC average over 3 years. You say 100k, I wouldn’t accept less than 200k. I’ve bought 3 books and that’s how I value them. Take half up front and the rest over 2 years with a stand by agreement to an out side person. The 2 years gives them peace of mind you will help with the transition. You will also get more because they can take a loan for the 100k and pay you out of revenue of the book for the rest. Win, win.
If you are looking to leave and not have a stand by, you might have to accept the 100k because an outside buyer might not want the risk.
Also, if you have an LLC, sell that instead of the book. You can treat the buyout as LTCG for taxes and only be subject to15% tax rate instead of income.
When I was just BD and not hybrid, the first book I bought was 2x with 100k “salary”for 5 years. Making the purchase over 2.5 for that reason. If I were you, I would contact your BD recruiter and tell them your terms and ask if the want these assets leaving or if the want to help you find a buyer in house. Worth a shot, at least.
Can you imagine a recruiter being able to reach out to a 50-100MM AUM person and say, “oh by the way, if you come over, I have a 16MM book I have in house up for sale for X that you can have if you come over."
I'd like to talk 513-317-2265