How to Sell Your Financial Advisory Practice


Many entrepreneurs dream of starting their financial advisory practice but often don’t think about how to sell it. Selling a business is a process that takes time and planning.

This article will go over the steps you need to take to successfully sell your financial advisory practice.


5 Steps to Selling Your Financial Advisory Practice

1. Determine the Value of Your Financial Advisory Practice

The first step to selling your financial advisory practice is determining its value. Several factors will affect the value of your business, including its profitability, its location, and current market conditions.

There are a few different ways to value a business. The most common method is to use a multiple of your financial advisory practice annual earnings or sales.

Find websites online that list companies like yours for sale. Start with Go there to determine the multiples of annual earnings or sales that other financial advisory practices are listed for sale. Then, apply those multiples to your business.

For example, if the average financial advisory practice is listed for 1.5 times their annual revenue, multiply your revenue from the last 12 months by 1.5 to estimate your current value.


2. Prepare Your Documents

To sell your financial advisory practice, there are many documents that buyers will need to see. These include your financial statements, tax returns, contracts, and leases.

You should also have a list of your key clients and any employees that will be staying on after the sale. Buyers will want to know who they’ll be working with and what kind of clients they can expect to work with in the future.

You should also gather your incorporation documents, any permits and licenses you have, and all agreements you have signed (e.g., licensing agreements, etc.). You should also prepare a summary of your business, including information on your history, your services, your competitive advantages, and your financial performance. 


3. Find a Buyer

The next step is to find a buyer for your financial advisory practice. There are a few different ways to do this.

One way is to use a broker. Brokers specialize in finding buyers for businesses, and they will typically charge a commission based on the sale price (usually, they charge a 10% fee).

Another way to find a buyer is to list your business for sale online. There are many websites like that allow you to list your financial advisory practice for sale, which can be an excellent way to reach a large number of potential buyers.

You can also market your financial advisory practice to potential buyers yourself. This can be done by sending out direct mailings or placing ads in newspapers or magazines.


4. Negotiate the Sale

Once you’ve found a potential buyer, you’ll need to negotiate the sale.

There are a few things to keep in mind when negotiating the sale of your business. First, you should be prepared to negotiate on price. Second, you should clearly know what you want in the sale, such as cash or equity in the new company. Finally, you should be prepared to walk away from the deal if it’s not a good fit for you.

Understand that many buyers may want to pay you partially upfront and partially over time. Be prepared for this, and realize that payments promised over time will not always happen.


5. Close the Deal

Once you’ve agreed with the buyer, it’s time to close the deal. This process will vary depending on the terms of the sale, but a few things need to be done for the sale to be final.

  1. You’ll need to transfer ownership of the financial advisory practice. This can be done by transferring the business’s assets to the buyer, or by transferring the shares of stock if the business is a corporation.
  2. You’ll need to transfer any licenses or permits required for the business’s operation. This can be done by contacting the appropriate government agencies.
  3. You’ll need to cancel or assign to the new owner any leases or contracts in place for your financial advisory practice. This includes leases for office or retail space and contracts for services such as advertising or accounting.
  4. You’ll need to notify your employees of the sale. This is typically done by sending out a letter or email to all employees.


6. After the Sale

After the sale is complete, a few loose ends need to be wrapped up.

  1. You’ll need to file a final tax return for the financial advisory practice. This return will need to include any income or gains from the sale of the business.
  2. You’ll need to cancel any business licenses or permits that are no longer needed.
  3. You’ll need to close any bank accounts associated with your financial advisory practice.
  4. You may also need to cancel any insurance policies in place for the business.

Once you have taken care of these things, you will officially sell your financial advisory practice. Now you’re ready for the next adventure!



Selling a financial advisory practice can be challenging, but with the right steps, it can be a smooth and successful experience. The six steps we’ve outlined in this article will help you sell your financial advisory practice. By following these steps, you’ll be well on your way to finding the perfect buyer and closing the sale.