23 TAKEAWAYSHere are 23 of their recommendations for how to do it right and command the maximum purchase price.1. You are transferring trust, not just a business. Bengen said he kept this idea foremost in his thoughts during the process.2. If you are an overworked sole practitioner, turn your practice into a business. No buyers want to purchase a job. Among other things, Nelson brought in a junior planner to lighten her load and get her practice humming. “If I’d done these things before, I might have just kept working because they made it more enjoyable to be there,” she said.3. Don’t assume someone in your office can succeed you. “An employee can be a great planner but not necessarily have what it takes to run a practice,” said Nelson, who had wanted to transfer internally but sold to an outside buyer.4. Don’t just hand off the company to a buyer. You risk losing all your clients and reducing the value of the sale, which likely will pay out over a number of years based on retained revenue.5. Give or sell clients who produce low revenues to a different planner. A number of Nelson’s oldest clients’ assets had dwindled to the point where they produced little income. She knew of a former planner she respected who was getting back into the business and could take them. This raised average revenue for Nelson’s remaining clients.
via Financial Advisors: Selling a Solo Practice | Financial Planning.