A common topic of discussion these days is whether an adviser should buy another practice - or more commonly, whether they should just buy a book of business from another practice.
- Is it just an asset purchase, or are you looking to buy an entire business (warts and all)? If so, what contingent and latent liabilities are lurking about?
- Similarity of client profiles between the businesses
- Geographical spread of business
- Demographics & statistics - average ages, portfolio size, product penetration or fee agreements
- Advice philosophy & values - how do product & process & philosophy work in each business
- Business relationships - suppliers, research, IT, transferable centers of influence or marketing arrangements
- Data management and CRM systems
- Workflow and advice processes - are they similar, or is substantial change required somewhere?
- Staffing - duplication of roles & responsibilities; individual skill sets; desired skill sets?
- Are there any "turnkey" or proprietary solutions that you are purchasing from the target business which would or could enhance your own existing business?
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