The Independent Advisor's
Succession Plan

Why Selling Your Own Firm Isn’t as Easy as You Think


When it comes to selling a financial advisement firm, many financial advisors think they can do the job themselves. After all, they’ve made a career out of giving people advice on this very topic. But when it comes to your own business, selling it yourself might not be the smartest move. It can be an emotional, turbulent time that can leave your business at risk if it isn’t handled correctly. If you have a financial advisor business for sale, you need to consider bringing in an outside firm to help you with the sale and transition for the most positive end results.

Selling a Business You’ve Built Isn’t Easy

There are federal, state, and local ordinances you’ll need to consider.

Selling a business isn’t as easy as accepting a check and handing over the keys, especially when it comes to a financial advisor business for sale. There are federal, state, and local ordinances that will govern how, when, and to whom you can sell your business. It’s a good idea that if you don’t bring in an outside company to help you sell your firm that you at least speak to an experienced business lawyer who can help you ensure you are following local and federal laws. An experienced succession planning company will be familiar with local and federal laws and can help you navigate them.

You’ll have less time to focus on your firm.

Selling a business isn’t an easy task. You’ll need to market your business, vet potential buyers, and prepare for the sale. Selling the business is a full-time job by itself, but until the sale is final, you still have a firm to run. You could be putting your firm at risk of losing employees and clients as your attention is pulled away from running the business and is focused on selling it, instead. Allowing another company to focus on the sale helps you stay focused on transitioning your clients successfully.

You’re putting the value of your company at risk.

Many independent financial advisors see the value of their company decline as they near retirement. In most cases, it’s because they are focused on selling their business and transitioning out of it instead of maintaining their current clients or even bringing on new ones. By ignoring the needs and growth of your firm before retirement, you run the risk of having the value decline and being forced to sell it for less than what you need for a comfortable retirement nest egg.

You don’t have the experience required for the job.

How many times in your life have you sold a business? Chances are, it’s one or less. Selling a business you’ve built from the ground up isn’t something you do every day, so there is no guarantee that it’s something you’ll be good at doing. This is one of those once-in-a-lifetime experiences that are best left to the experts in order to make the transition and sale as positive as possible.

It’s an emotional transition.

Leaving a business that you love and have spent years building isn’t easy. No matter how excited you are about your retirement, chances are you are going to feel emotional about the sale of your company. That’s perfectly normal, and those are feelings that you should acknowledge. You may be too emotionally close to the situation to make smart financial decisions for your company. You may overestimate the value of your company or focus on minor details that won’t matter to a buyer. A professional can help guide you through the process and put your mind at ease about this major life event.

There Is an Easier Way to Do It

When it comes to selling your financial advisor business, there is a much simpler way to do it rather than doing it yourself. That’s with the help of a company who is experienced in succession planning for financial advisors. advisorRETIRE™ has helped many financial advisors get the most money for their company while making a successful transition into their retirement years. Let us do the hard work for you so you can focus on taking care of your clients. Get in touch with the advisorRETIRE™ team today through our website for more information.

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