FINANCIAL ADVISOR INSIGHTS: July 10 - Business Insider

In the next five years, there will be plenty of buyers for financial advisor practices. According to a Financial Services Institute survey, 29% of advisors are looking to buy in the next few years, compared to 15% who are looking to sell. In the six to ten years, those numbers change to 24% and 29%, respectively.

"David Grau Sr., founder of FP Transitions and author of 'Succession Planning for Financial Advisors: Building an Enduring Business', suggests there are probably even more buyers to sellers out there than the survey shows. For example, a fee-based practice in Boston bringing in $250,000 in income and 70 percent recurring revenue would get between 50 to 70 interested buyers in less than a week," Diana Britton wrote in Wealth Management.

"Despite the high ratio of buyers to sellers, practices are not going to go to the highest bidder, Grau said. Instead, sellers look for buyers who are as good or better than they are but are twice the size. They then look at best geography and lastly, price and terms of the deal.

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