If there’s a successful financial practice advertised for sale, there’s likely to be a lot of competition for it.
This is especially likely to be the case if they’re advertising the sale on Succession Link, where there are hundreds of established business searching for merger or acquisition opportunities.
It’s fantastic if you’ve got enough capital to make a reasonable bid on a practice like this, but it’ll often take more than a bucket-load of money to prove you’re the best buyer.
Most departing owners want to ensure their business will be in safe hands after they head off into the delights of retirement or move on to their next business venture.
As such, you need to prove that you have the most prosperous pair of hands to cradle their business with.
Below are some tips to help you do this.
History of success with a similar type of practice
Succession Link allows you to create a profile where your career history stands front and center.
If you can demonstrate experience of growing a company in a similar niche to the practice that is for sale, that will put you in good standing to speak further about the sale. Sellers of businesses typically look for proof, not promises, when searching for a successor.
It’s likely sellers will be looking for an example of situations where you’ve dealt with a similar-sized company, and made it more sustainable by adding extra clients and/or upskilling staff so they can work at an advanced level.
If you can demonstrate many years of experience at growing a company (rather than just sustaining it) this is likely to work in your favor too.
Being on the same page as the departing owner
The seller is as likely to want a smooth transition between owners as you are. This means they’re likely to be eager to choose a successor with similar opinions on the future direction of the company.
They’ll likely wish that the company culture remains similar and that the core values of the business as it stands are respected.
A big change to these major areas of the business is likely to unsettle employees and clients, causing an unhealthy amount of churn. This is the last situation either party will want.
This doesn’t mean you should blindly agree with everything the seller tells you about the business. If it doesn’t suit your personal values and ideas, it’s best to accept that this opportunity isn’t a good fit for you.
A healthy bid
The amount of money on the table will certainly affect the seller’s decision, but you should use your own judgement as to the business’ value. The asking price is most certainly negotiable and any bid on the table should be subject to due diligence.
Succession Link makes it easy to find merger or acquisition opportunities that are perfect for you. Our website has an extensive database of financial practice owners who are looking to sell up. By signing up to our database, you can connect with hundreds of professionals and pitch your case to be the successor of their practice. Click the link to learn more about how Succession Link allows you to easily connect with these professionals and strike a deal.