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My last article about inspecting practices for assessing their value received a lot of traction and prompted quite a few of you to reach out. I knew this would strike a nerve as many of you have considered buying or selling a practice. As a buyer, you need to inspect the nuts and bolts of a practice. As a seller, you must also make sure the gears of your practice are in top condition before inspection.
If you want to sell your practice in the next 5 years, you must have a plan.
Most advisors think they will live and work forever. I am sorry to burst your bubble, but this is not the case. You will have to stop working at some point, and it is sooner than you think you will be sharp enough to still do your job. If there is a slight pinging in the back of your mind you need to prepare to sell, even if it is 5 years away or more, you need to prepare. You are planners, you need to plan for your exit and most of it has nothing to do with gross revenue.
You need to have an objective third party inspect your practice. We specialize in inspecting practices. We give you a roadmap on what you can do to increase the value of your practice, make the succession process better for your team, and help the buyer retain more of your clients after the sale.
If you buy a house, don’t you look at the inspector's report? What happens if it needs a new roof? Are you going to offer them full price? That report helps you make an informed decision on what needs to be done to the house, there is a level of transparency there. I ask again, why aren’t we doing this?
When you go to sell, how wonderful would it be to hand the potential buyer a 15-30 page report with an action plan on what needed to be done to make the practice ready for sale? Even better, how much more valuable will your practice be to the purchasing advisor if you actually fixed some of your problems? As a business owner, I want to really know what I am buying. We work in a relationship business, we don’t transact widgets, we help people with their life. Part of what you are buying is relationships. How can a spreadsheet give your proper information on the relationships?
I will hold an invitation only webinar to give you a look under the hood at our inspection process.
If you want to sign up, please email me