Know the Deal Breakers Before Selling Your Practice

Tait LaneAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives

For 10 consecutive years, there has been a steady uptick in M&A activity in our profession as financial advisory and wealth management firms continue to pursue opportunities to fuel growth or execute an exit strategy.

If you’re a firm owner, deciding to sell or merge with another firm is often fraught with conflicting emotions. You’ve spent years building a business, so it’s natural to question whether you can give up some measure of control. But many firm owners conclude that selling or merging is the best way to manage growth, scale their business, serve clients more effectively and attract and retain talent.

That’s how it was for me.

More than a decade after launching my advisory business, I was burnt out from working 70-hour weeks and knew I needed more support. Last year, I engaged with a consultant to identify potential options. At first, I resisted going the route of a merger or acquisition but wanted to keep all my options open. Throughout the process, I spoke with 13 firms and then engaged more deeply with three, not including Merit Financial Advisors (which came in through a separate channel).