M&A Department

 

About our Aquisition & Legacy Services

Buying, selling, or transitioning a practice are generally once-in-lifetime events. Most advisors do not fully understand the complexities involved in these processes - including the emotional consequences of these life-changing decisions. Our M&A Experts offer services to help walk you through every aspect of these transitions.

We provide expert guidance at every step - from valuing your business, to considering tax consequences, negotiating deal terms, protecting against attrition, preparing your clients for the transition, and moving through the transition with the opposite party. We can also help advisors plan for the unknown with our Continuity Planning.

Our primary goal of every service is to ensure that you are 100% confident in all the decisions made about your practice so that you have absolutely no regrets when all is said and done.

Our specific Acquisition & Legacy Services are listed below. (For Business Valuations - please see our Assessment Services).

Loan Escrow Service

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What is Escrow?

An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company.

Escrows are very useful in the case of a transaction where a large amount of money is involved and a certain number of obligations need to be fulfilled before a payment is released. For example, the sale of a financial advisory practice often contains an attrition clause which requires certain metrics to be met before a portion of the purchase price is paid to the Seller. The funds necessary to pay the Seller are held in the Escrow Account and released upon the agreed upon transfer date. The Seller, upon the sale of the financial advisory practice, will know that the funds are available rather than wondering if the buyer has the funds.

Why would you use an Escrow account?

•Your purchase agreement provides for multiple payment periods and the Buyer or Buyer’s lender will have the all of the funds available at the initial closing but the funds to satisfy the additional payments need to be held by a third party.
•The Seller has a desire to receive purchase payments over multiple tax years (subject to certain criteria).

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Acquisition & Succession Consulting

Acquisition & Succession Consulting

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Navigating the complexity of succession planning issues can be a challenge. In addition to price, there are many more factors to consider when buying, selling, merging, or transitioning a practice. Our experts know exactly what steps to take to ensure a successful deal for all parties involved. Our Consulting service can provide you with guidance and support for all aspects of your transition.

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Turnkey Continuity Planning

Turnkey Continuity Planning

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 Recent studies show that as few as 17% of financial advisors have an actionable succession plan, and fewer than half have a continuity plan to protect their heirs in the event of their death or disability.

Given that one's financial planning practice is likely his/her largest financial asset, why would they not have a protection plan in place?

According to attorneys who work with business owners on succession planning, the five biggest obstacles are:

• Procrastination - finding the time to plan
• Failure to obtain the proper valuation of the business
• Failure to identify the succession team
• Failure to integrate the business succession with the estate plan
• Failure to plan for the 4 D's: Death, Disability, Divorce, or Departure

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Advisor Legacy Practice Sales

Advisor Legacy Practice Sales

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For most successful advisors, leaving a legacy is the most important aspect when selling their practice. While price and terms are important, the fit between buyer and seller is the paramount consideration. Advisor Legacy (http://www.advisorlegacy.com), a web application by Key Management Group, provides a comprehensive platform to find the best match between the buyers and sellers of financial advisory practices.

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