For many independent advisors, building a successful practice is a labour of love - and often a lifetime’s work. But what happens when it’s time to transition? Whether you're thinking about retirement, partnership, or merging with a larger organization, the process of becoming sale-ready doesn't start when you list your business. It starts years or decades earlier.
In an episode of 18-Minute Experts, Michael Macoun, Vice President of Corporate Development at People Corporation, puts it this way: “You don’t want to decide to sell and then start fixing things. That process ideally begins years before a transition.”
That kind of foresight centres more than maximizing the sale price. It ensures your clients are protected, your team has continuity, and your legacy lives on through a thriving business. So what exactly should advisors focus on as they build - and prepare to one day exit - their business?
Get your Financial House in Order
First impressions matter. And that includes your books.
Clean, accurate, and up-to-date financial records are non-negotiable. Potential buyers want to see profitability, revenue trends, and detailed breakdowns of income sources. Inconsistent billing, weak cash flow, or outdated systems are red flags. If you’ve been putting off cleaning up or streamlining your financial processes, now’s the time.
Bonus tip: focus on recurring revenue. It’s a powerful indicator of future stability, and buyers love it.
Build Repeatable, Scalable Systems
Your practice may run like clockwork because you’re in the middle of everything. But if a buyer can't replicate your success without you, your value drops.
Make your business systems-driven, not founder-dependent. Document client onboarding procedures. Standardize communication and reporting. Automate what you can and delegate the rest. In short - build your practice like a franchise, even if you never plan to expand.
The goal is simple: make it easy for someone else to step into your shoes without your clients feeling the difference.
Know - and Grow - your Client Retention Strategy
Your client base is your most valuable asset. What matters is not how many clients you have but how loyal they are. Buyers want to know your clients will stay after you're gone. That means investing in deep relationships, consistent communication, and strong service models long before a transition is on the table. Demonstrating strong client retention metrics (and having the documentation to prove it) tells acquirers that they’re buying more than a spreadsheet - they’re buying trust.
Culture Matters (A Lot More Than you Think)
Culture fit is often underestimated in M&A - but it's critical. “We’re not just acquiring financials,” Mike says on the podcast. “We’re acquiring people, their values, and the way they treat clients.”
If you're considering selling to a larger firm or merging with a partner, start by reflecting on your internal culture.
- Do your team’s values align with your potential buyers?
- Are you clear on what matters most to your clients?
If the answer is yes, that cultural synergy will become a strong selling point. If not, it may be time to start shaping a culture you’d be proud to pass on.
Timing Is Everything
The best time to prepare for succession isn’t when you're ready to leave - it's when your business is at its strongest. Being proactive gives you leverage. It lets you explore multiple options, negotiate from a position of strength, and create a transition plan that works for everyone involved - especially your clients. Even if your exit is still years away, starting the conversation now means fewer surprises and better outcomes down the road.
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