Recently Released!!!
Date Published: August 25, 2021
Summary PowerPoint Deck: 76 Slides
Reference PowerPoint Deck: 452 Slides

The purpose of this research is to provide readers with a comprehensive understanding of the financial advisor sale process, including step-by-step guide to selling a financial advisory business to a third-party. This research compliments Tiburon's research on Financial Advisor Succession Planning, which focuses on the earlier step of deciding the most appropriate outcome for one's business, and Tiburon's research on Financial Advisor Mergers & Acquisitions, which focuses on past transactions & their valuations. And together these three topics support Tiburon's research on Financial Advisor Succession Planning, Acquistions, & the Sale Process.

This research starts with a context setting chapter outlining the reasons that financial advisors may sell their businesses and the trends that are supporting the popularity of financial advisors selling their businesses.

This research addresses several historical phases of the financial advisor sale process, including:

• Haphazard Phase
• Clarification Growth Phase
• Maturation Phase

This research offers a step-by-step process for selling a financial advisory business to a third-party, including:

• Identify Appropriate Strategic Advisors
  • Financial Advisor Coaches
  • Investment Bankers & Business Brokers
  • Law Firms
  • Lenders
• Develop a Book, Offering Memorandum, or Summary Presentation
  • Financial Statements
  • Clients Analysis
  • Employee Records
  • Business Policies & Procedures
• Advertise &/or Search for Potential Buyers
  • Advertise
  • Search
• Sign Confidentiality Agreements and Share Book, Offering Memorandum, or Summary Presentation
  • Sign Confidentiality Agreements
  • Share Book, Offering Memorandum, or Summary Presentation
• Negotiate Transaction Price, Payment Components, Purchase Methodology, & Other Terms Leading to a Letter of Intent
  • Price
  • Payment Components (Up-Front Cash, Seller Financing, and/or Earn-Out)
  • Purchase Methodologies (Stock Sale, Asset Sale, Consulting Agreement)
  • Other Terms
• Facilitate Due Diligence and Negotiate an Executable Contract
  • Review Financial Statements, Client Analysis, Employee Records, and Business Policies & Procedures
  • Examining Cultural Issues of the Firms
  • Negotiate Executable Contract
• Prepare for the Close & Execute on Integration
  • Prepare for the Close
  • Execute on Integration

And this research makes several future predictions for the financial advisor sale process, including:

• Financial Advisor Sale Processes to Become More Formal
• Financial Advisor Transaction Terms to be Streamlined
• Financial Advisor Transaction Financing Sources to Emerge