If your succession plan involves selling your practice, whether to an outside advisor or to someone inside your practice, chances are the proceeds of that sale represent a large portion of your retirement savings plan. As a result, you’ll want to maximize the value of the business you’ve spent years building. That’s easier said than done, of course. Firm valuations depend on a complex constellation of factors, including revenue, cash flow, client base, and even staff resources. “To really make sure your practice is as valuable as possible, you need to address several different components,” says Brad Bueermann, CEO of Oregon-based FP Transitions, a consulting firm that specializes in guiding financial professionals through transitions like this. Here are some steps you can take to help raise your firm’s value to the next level.
Peter McDougall has been writing about topics relating to the financial services industry for more than seven years. He was a regular contributor to Dow Jones Newswire's Financial Adviser blog from 2009 through 2013, and has also written for Money Magazine, Restaurant Business, MaineBiz and TheStreet.com.