Anne Field writes on WealthManagement.com about getting your practice ready for sale. Her article begins as follows:
Your first step is to have an outside vendor value your firm so you know what’s valuable and what might be a drag on the price. The best-case scenario would be to have five years to fix any gaps in your services, clientele or operations. “You need a plan,” says David Grau Sr., president of Lake Oswego, Or.-based FP Transitions, which specializes in financial advisory mergers and acquisitions. “You can’t do this by the seat of your pants.”David McMenamin, founder of $70 million AUM Horizon Financial Group in Tucson, Ariz., began looking at his exit strategies in 2007. He realized that one important factor in a valuation would be his firm’s “internal operational procedures,” or specific and repeatable processes that a buyer could easily step into without interruption. “We needed to start getting all our systems in place,” says McMenamin.