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Funding A Financial Advisor Practice Acquisition

Picture of Alan Salomon, CPA/ABV, CVA Alan Salomon, CPA/ABV, CVA June 30, 2025

Practice Acquisitions

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For many advisors looking to grow their practice, acquisitions are an attractive path. The challenge, however, is identifying the best way of funding a financial advisor practice acquisition in a way that lets you move quickly on an opportunity without depleting resources. Each acquisition is unique, and it is largely up to the parties involved to determine what they are willing to invest/accept. However, there are typically three ways to finance an acquisition.

Self-Financing

One option is to finance the purchase yourself. The benefits are that you don’t have any liabilities moving forward and you remain in total control of the business. The downside is it limits the size of business you can purchase and ties up much needed capital.

Seller-Financing

For many years, seller financing was a popular option, if not the only option in some cases. It allowed buyers to participate in larger deals than they could with self-financing, while giving sellers a way to ease into an exit. However, few sellers are willing to carry a note, and if they do it is usually at five-year terms. Shorter term equals higher monthly payments, which can significantly impact cash flow.

Bank Financing

For many years, lenders shied away from providing loans for financial advisor acquisitions. This was largely due to the fact that they didn’t know how to value and structure acquisitions for this industry. However, in recent years many lenders have entered the field and are providing a variety of loan options to buyers. More importantly, they are offering loans that have terms up to 10 years with interest rates and fees that allow advisors to preserve cash flow while expanding purchasing power.

Guide to Financing an Acquisition with a Loan

Due to the increase popularity and accessibility of lender financing, we reached out to a number of our lending partners to develop a guide that highlights the benefits of loans for acquisitions and key things to prepare yourself for the loan process.

Download the free guide.

Alan Salomon, CPA/ABV, CVA

Alan Salomon, CPA/ABV, CVA, is a valuation and tax specialist with more than a decade of firm ownership and hands-on experience serving closely held businesses. He provides accredited valuations for buy/sell agreements, estate and gift matters, divorces, shareholder/member disputes, and fair value reporting, as well as personal, business, and fiduciary income tax preparation and planning. Alan’s articles explain how valuation approaches apply to advisory practices, how to document defensible conclusions, and where tax planning can materially impact deal structure and after-tax proceeds. His work emphasizes compliance with professional standards and practical documentation that stands up to scrutiny.