How to Identify the Ideal Buyer for Your Business

One of the biggest hurdles that will need to be jumped over in a financial advisor’s succession plan is finding the ideal buyer. For most financial advisors, the right buyer isn’t likely going to just appear on your doorstep when you are ready to sell. You’ll need to actively look for the right person. The first step to finding the right person, though, is knowing who you are looking for in the first place.

Who is the Right Person to Buy Your Business?

Who do you imagine taking over your business? Don’t get too hung up on finding someone who does things exactly like you do. We’ve discussed the issue of holding out for someone “just like me” before on our blog, and it still holds true now. You aren’t looking for your clone. What you are looking for, though, is someone who holds the same values that you do. You want someone who your clients are going to feel comfortable with and confident in their abilities. Chances are your clients won’t care too much about how the new person gets the job done, just that the job is getting done and that their money is in good hands.

So who are the potential buyers of your business? They are often closer than you might think. Look at any up-and-coming financial advisors on your staff and see if they are interested in purchasing the business from you when you retire. It might even be a nearby competitor, depending on their proximity to you and how similar your values are between the two of you. The right buyer might be further off, too, and take the form of a larger corporation excited to tap into your local market. Don’t discount any of these potential buyers. Consider them along with all of their pros and cons and decide who is the right buyer for your business.

How to Identify the Right Person

Ultimately, the right person to buy your business is the one who can afford to buy the business in the first place and who you feel confident in for their ability to look after your clients when you stop working. After all, your clients are the ones who matter the most in this scenario, and you’ll want to make sure they are comfortable with the transition from your services to someone new. The goal is to make yourself unnecessary to your business, as hard as that might sound. The right person to sell your business to is the person who makes this an easy job to get done.

We Can Help With Your Transition

If you are looking for the right person to purchase your financial advising business, talk to advisorRETIRE™. We have solutions that can make your succession planning easy on your, your clients, and the buyer. You can give us a call or contact us through our website and we’ll get in touch with you with more information about our services. Get the help you need to make your retirement an easy transition!