Seller Advocacy FAQs
Our Seller Advocacy Program is designed to help RIAs, advisors, and agents sell their practice, using sell-side representation.
Our Seller Advocacy Program is for business owners who are looking to exit the advisory business in the next year (sell today, transition over the next year) or five years (sell today, be retained for an extended period).
The exiting advisor should engage in the Seller Advocacy Program.
We discourage you from including staff members on these calls. However, we have a couple resources to assist with conversations with your staff and incorporating them in the process at the right times and with the right people.
We request you complete a questionnaire. The bulk of the questionnaire is used to prepare the seller prospectus.
The Seller Advocacy service fee is 6% of the total value (e.g. purchase price + retained liabilities + post-consulting agreements), split evenly between the buyer and seller (3% each). A minimum fee of $20,000 applies, with $10,000 paid by the seller.
This is a myth. Advocacy ensures that the buyer(s) you have is the most qualified, most experienced, and most financially competitive buyer. Through SRG’s Advocacy System, SRG encourages any and all buyers to work with us through this process to ensure that you understand your options and do not leave any boxes unchecked or money left on the table.
In 2023, the average recurring revenue multiple for advisory practices is 3.02x.
In 2023, the average down payment for advisory practices was 63%.
For most advisory transactions, nearly 94% of the purchase price is allocated to personal goodwill, resulting in long-term capital gains tax treatment.
This is a myth. Advocated sellers tend to be able to dictate terms – which allows sellers to sell today and stay on for an extended period of time as an advisor, consultant, business development rainmaker, etc.
No one has a crystal ball and multiples continue to increase, but if you are contemplating this question, the answer is NOW. When you ultimately decide to sell, you want to ensure that revenue has been increasing steadily year-over-year (e.g. 7-15% increases annually) and the age of your client base remains low – these items will help ensure that when you go to market, your company is well sought after.
SRG has extensive marketing efforts which includes:
• Over 360 partner firms (broker-dealers, custodians, TAMPs, compliance companies, lenders, industry-specific accountants and attorneys)
• Over 1,500 Qualified Buyers
• Direct Marketing Efforts through Social Media Platforms
• Your Buyers
• Other narrow marketing searches, such as NAPFA members, SRI Advisors, or Ron Blue Trust affiliates.
We are the best at what we do in the financial services industry. Below are a couple of reasons why:
1. SRG is a sell-side representative advocating for you, at no cost to you.
2. SRG is a neutral third-party.
3. SRG has decades of exclusive experience within the financial services industry.
4. SRG has a Advocacy System using the 9-Step Process.
5. SRG’s advocacy program is not a passive program or listing site.
6. SRG ensures your information is confidential 100% of the time.
7. SRG has a well-qualified and credentialed team of W-2 employees so you always have a centralized team – not affiliates or 1099 contractors.
8. SRG has several external professionals on retainer to ensure contracts and resources are maintained and issues can be addressed, when needed.
9. SRG is not directly or indirectly paid by, affiliated with, or receive bonuses from broker-dealers, custodians, TAMPS, etc. for the retention of Assets Under Management (AUM), Assets Under Advisement (AUA) nor do we have any other conflicts of interest.
Yes, generally buyers are eager to retain well-qualified, experienced staff members during the transition and beyond.
There are approximately 83 buyers to every 1 seller.
Watch 2024 M&A Webinar
Finding advisors while time consuming is not difficult. However, finding, qualifying, and ensuring that these advisors are a good fit for you and your practice takes time, dedication, neutrality, and consistency from buyer to buyer. As an advocate for you, the seller, we ensure that we bring in all buyers – including from key stakeholders – and screen them to ensure we do not just set up introductions with buyers, but set you up for success through extensive screening and buyer materials.
Check out our Infographic: When Everyone Wants to Help you Sell
Kristen Grau, CPA, CVA, Executive Vice President
Aliza Perry, Project Coordinator
Jordon Segura, Project Administrator
SRG is the best at what we do.
We focus solely within the financial services industry.
We strive for excellence and, as a result, we are always learning, adapting, and revising our deliverables and resources to ensure that you receive a fair, accurate, and timely product as the industry changes.
We are neutral. We are not affiliated with a broker-dealer or custodian.
We pride ourselves on service – providing high-touch, high-quality solutions to every client every time.
