the fast-paced world of financial advisory, staying ahead of the curve is not
just a choice; it's a necessity. The decision to de-risk and sell part or all
of your business is not one to be taken lightly. However, the current market
conditions are signaling that now might be the opportune time to make a move.
From the fear of fee compression to the favorable supply and demand dynamics,
there are compelling reasons why you should explore all of your options.
1. Fear of Fee Compression: Adaptation is Key
2. Supply and Demand: Business Valuations at an All-Time High
of the most compelling reasons to consider hiring us is the favorable supply
and demand dynamics in the market. Business valuations for financial practices
are currently at their strongest levels ever, but that
is not likely to continue. The supply of quality financial advisory firms looking to
exit is growing substantially given the aging of the industry. With the average
age at 59 of financial advisors, over 1/3 of the advisory firms will be
retiring over the next 5 years. Many are looking to monetize the "locked up"
value of their business. At the same time, as cash from acquirers gets deployed
given the consolidation of the industry, there will be less capital chasing
more firms likely putting pressure on valuations.
3. Evolving Regulatory Environment: Navigating Compliance Complexity
financial advisory landscape is no stranger to regulatory changes, and staying
compliant can be an arduous task. As regulations continue to evolve, the
complexity of compliance is likely to increase. By de-risking, you can offload
the burden of staying up to date with regulatory changes and shift your
attention back to what you do best - serving your client's financial needs.
4. Time for a New Chapter: Exploring New Opportunities
is often an inevitable part of life, and sometimes embracing change can open
doors to new opportunities. Monetizing your practice could be the catalyst for
starting a new chapter in your professional journey. Whether you're considering
retirement, pursuing a different passion, or exploring a new avenue within the
finance industry. De-risking and monetizing provide you with the freedom to
make choices aligned with your goals. By making this decision now, you can
proactively shape your future on your terms. This can
and should include rethinking your "highest and best use" of your time and
talent by designing the ideal role for the last stage of your career.
Conclusion: Find the Best Strategic Partner
The decision to sell part or all of your practice and choose the last and best strategic partner is a significant one that requires careful consideration. When the time comes, it's important to have a consultant on your side to help you maximize your practice valuation, avoid life-changing mistakes, and to navigate the complexity.
wait for tomorrow when you can seize the benefits today. After all, the best
time to have hired an expert was yesterday - so why not take the first step
towards a brighter future?
You can contact us for a free consultation to discuss your practice in more detail.