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Succession Planning

Succession Planning

Not all succession plans are created equal, and deal structures and valuation methodologies can vary greatly. Henschen & Associates can help you formulate a succession plan that’s right for you.

We can assist you with traditional book-buying opportunities, guide you in financing the sale and reviewing buy-sell agreements. Valuations for these opportunities typically range from 1 -1.5x trailing revenue (transaction-based model) to 2 -2.5x trailing revenue (fee-based model) or larger for multi-million revenue advisory focused practices.

We can guide you to a broker dealer that gives you numerous options in advisors looking to buy a practice in your geography and then assist you with merging the practices at the defined trigger points. In addition to geography, we also consider similar product mix, the fit of the broker dealer and compatibility in terms of the candidate’s operating style and values. 

Broker-Dealer Level Opportunities

Henschen & Associates can also help guide you to a broker-dealer level succession plan (these require you to switch to their BD). Examples:

  1. We can lead you to a plan that pays 75% of the revenue your current book produces annually for 20 years for you and your beneficiaries — that’s 9x more than a traditional book selling price (available for practices that are $250K in revenue or higher).
  1. We’ll help you switch to a high-end broker dealer that pays a 5-year forgivable note in the 20-30% trailing GDC range based on profitability. At the end of 5 years your book is bought outright, paying 5-7x EBITA (available for practices that are $1 Million in revenue or greater).

Get peace of mind for yourself and your clients. Call Henschen & Associates for a no cost to you exploration of a succession/continuity plan.

What Our Clients Say…

I’m 70 years old without a succession/continuation plan. My broker dealer had no other reps in my geography and they seemed unwilling to look for someone outside of their firm. Jon not only found me a broker dealer with several advisors in my area that were outstanding matches for a succession/continuation plan, but he also found me a broker dealer that was an outstanding option for my hybrid model.  Jon’s ability to find an appropriate broker dealer coupled with fulfilling my succession needs saved me a great deal of time and effort.

-L Sfinas, PA