Financial advisors often think of the sale of their practice as a milestone that marks the end of a career. Selling a practice is seen as the final step before heading into retirement. However, selling one’s practice doesn’t have to be an all-or-nothing affair. In fact, a partial practice sale can often help boost an advisor to a whole new level of production.
Many advisors accumulate accounts throughout their career that don’t necessarily fit in with the larger focus of the practice. They could be small accounts that just don’t generate the revenue to justify the resources they require. The advisor may have focused on a specialization or niche and have handful of clients that don’t fit in.
Regardless of the reason, these unwanted accounts can be monetized through a partial practice sale. A partial sale can benefit a buyer, who may see value in the accounts, and a seller, who is now free to focus on the practice’s core business.
A recent study by PriceMetrix Inc. found that partial sales can be particularly effective for advisors looking to shed small accounts. According to the study, the average advisor who cut less-than-$100,000 accounts by five percent saw a revenue increase of $43,000.
Succession Link can help you monetize your unwanted accounts by giving you and your practice exposure to potential buyers who may find those accounts attractive. As a seller, you can always list your partial practice sale anonymously and without cost.