How to Value, Buy, or Sell a Financial Advisory Practice A Manual on Mergers, Acquisitions, and Transition Planning

by Tibergien, Mark C.; Dahl, Owen

• ISBN13: 9781576601747
• ISBN10: 1576601749
• Edition: 1st
• Format: Hardcover
• Copyright: 2006-07-01
• Publisher: Bloomberg Press

Summary

Financial planning is a young industry. The International Association of Financial Planning - one of the predecessors to the Financial Planning Association - was formed less than forty years ago. But as the profession's first tier of advisers reaches maturity, the decisions that may be part of transition planning for their firms loom large. A sale? A partner buyout? A merger? No matter what the choice, its viability hinges on one critical issue - the value of the firm. Unfortunately, many advisers - whether veteran or novice - simply don't know the worth of their practice or how to influence it. That's why "How to Value, Buy, or Sell a Financial- Advisory Practice" is such an important book.

Author Biography

Mark C. Tibergien was a principal at Moss Adams LLP, the twelfth-largest accounting firm in the United States, where his responsibilities included management consulting, business valuations, and business owner succession. For the past five years, Accounting Today has recognized Tibergien as among the "100 most influential" people in the accounting profession. In 2003, Financial Planning magazine recognized him as a "mover and shaker" in their annual review of industry professionals, and for the past two years, Investment Advisor has recognized him as among the "25 most influential" in the financial-services industry. He is coauthor of Practice Made Perfect: The Discipline of Business Management for Financial Advisers. Tibergien is now CEO of Pershing Advisor Solutions.

Owen Dahl is a senior manager in the Valuation and Litigation Services group of Moss Adams LLP. He has provided commercial litigation, damages, asset-allocation, and acquisition consulting services to small and large corporations alike. Dahl specializes in issues relating to intellectual property and works with firms for which such issues are key. He has more than fifteen years' experience in the investment-advisory industry. A native of Canada, Dahl is a chartered financial analyst and a member of the CFA Institute and the American Society of Appraisers.

Table of Contents

Acknowledgments	ix
Introduction	xi
Part I Defining Value
Uncovering True Worth	3	(10)
Evaluating Fiscal Health	13	(16)
The Income Approach to Valuation	29	(16)
Other Approaches to Valuation	45	(10)
Part II Assessing Value
The Multiple-Partner Firm	55	(24)
The Solo Practitioner	79	(18)
Part III Coming to Terms
The Art of Negotiation	97	(10)
The Seller's Perspective	107	(14)
The Buyer's Perspective	121	(20)
Getting All the Way to Yes	141	(20)
Part IV Ounces of Prevention
Essentials of Due Diligence	161	(6)
Antidote to the Postmerger Meltdown	167	(12)
Making It Legal: A Sequence of Steps	179	(18)
Part V Inside Stories
Partnering: A Complex Choreography	197	(16)
Buy-Sell Agreements: The Path to Happier Endings	213	(12)
Part VI The Marketplace
Making the Match: Intermediaries	225	(10)
Finding the Ideal Buyer	235	(22)
Building Value: The Firm That Sells Itself	257	(20)
Appendix of Sample Documents	277	(46)
Index	323