A Financial Advisor Practice — Buy

: The seller may carry a promissory note, often for a 5- to 10-year term.

: Many successful deals come from "planting seeds"—building long-term relationships with other advisors well before they are ready to sell. Valuation and Deal Structure buy a financial advisor practice

Lenders typically base their decisions on future cash flow rather than tangible assets: : The seller may carry a promissory note,

: Recurring fee-based revenue is valued much higher than one-time commission revenue. : Payments contingent on future revenue or client

: Practices with younger, "next-generation" clients (Millennials and Gen Z) often command a premium. Common Deal Components : Down Payment : Usually 30% to 40% of the purchase price.

: A popular choice offering up to 10-year repayment terms and flexible collateral requirements.

: Payments contingent on future revenue or client retention, typically lasting 3 to 7 years . Critical Due Diligence