Is It Time to Hire an AFA?

By Key Management Group

This post is part one in our series on hiring and maximizing an AFA.

Your financial advisor practice is growing, and to keep growing you know you need help. Many advisors who reach this point believe the next move is to hire an AFA. Unfortunately, this is one area where many advisors make their biggest-- and most costly--mistakes. Before pulling the AFA trigger, ask yourself these questions.

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Are You Ready To Lead A Financial Advisor Practice?

By Key Management Group

Many advisors venture out on their own in order to grow a vibrant book of business. As the client roster grows, the need to bring on more help to manage clients also grows. But the skills that make you a great financial advisor do not make you a great practice leader. To effectively transition from the role of financial advisor to financial advisor practice leader, you need to develop several key skills.

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What Your Priorities Should Be For Each Phase of Your Practice

By Key Management Group

Your practice will go through many stages of development as you start, grow, and eventually leave the business. In order to successfully develop your practice along the way, it’s important to know where to focus your efforts and what your practice should look like in each stage.

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The Difficult Decision to Sell Your Practice

By Todd Doherty

How will my clients react to my practice sale?

“Of all the details to be concerned about regarding my practice sale, this is the one that kept me up at night. In retrospect, my concern for my client’s reactions was likely the reason I didn’t retire years ago as I had planned.

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What Drives Practice Value - Up or Down

By Anthony Whitbeck, CFP, CLU

KMG recently conducted an analysis of 200 of their most recent business valuations to determine what factors influence value, both up and down. You might be surprised at some of the results.

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Are we still in a seller’s market for financial advisory practices?

By Todd Doherty

Are we still in a seller's market for financial advisory practices?  I am often asked this question and the answer is “yes” but qualified. The anticipated shift from seller’s to buyer’s market, brought about by the retirement of the baby boomer generation, is gradual and not a flip of a switch. We started experiencing the shift at the beginning of 2016, with the first signs being the number of interested parties for each sale declining.

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Practice Profitability Made Simple

By Todd Doherty

Through our valuation service, we have collect hundreds of P&L statements each year, allowing us to develop valuable insights into practice profitability. OK, I will admit this isn't a simple subject, but it turns out that it can be viewed in simple terms.  So, what's important? Client segmentation (the ratio of low and high-end clients based upon assets under management) is highly correlated to efficiency and profitability.

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Income Tax Allocation of Sale/Purchase of Practice

By Alan Salomon, CPA/ABV, CVA

As financial planning practices are transferred from one owner to the next we find it necessary to provide a basic discussion of the issues that both the buyer and seller will encounter from an income tax perspective. Our discussion is not intended to be all inclusive by any means, as the facts and circumstances related to each sale can vary substantially. We encourage you to discuss the specifics of your situation with a qualified tax advisor, as the below information is not intended to provide and should not be construed as providing income tax advice in any manner.

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What Is A Buy Sell Agreement?

By Jeffrey Sternberg, JD

"We don't need a buy sell agreement" is heard on a daily basis by accountants, attorneys and financial advisors from their clients who own small businesses. Business owners never want to plan for the day when they need to go their separate ways due to personality conflicts, different business strategies, or simple retirement. The divorce, death, loss of a business license or disability of an owner can trigger unforeseen consequences to a profitable business. A business with one owner rarely develops a business continuity plan in the event of death or disability.

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What Is A Continuity Buy Sell Agreement?

By Jeffrey Sternberg, JD

Accountants, attorneys and financial advisors often hear "We don't need a continuity buy sell agreement". A business, with one owner, rarely develops a business continuity plan in the event of death, disability, or loss of license. What about your business? As a financial advisor, you are operating your own business. Do you have a continuity plan in place?

 

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5 Reasons to Consider Selling Your Practice Now

By Anthony Whitbeck, CFP, CLU
CEO of Key Management Group

After years of building a successful practice, advisors face both an emotional and financial decision regarding the sale of their practice. Emotionally, advisors have spent years building deep relationships with their clients, many who have become friends, and some who are like family. The thought of transferring these close relationships to someone else becomes very personal.

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