2 min read
Many advisors find themselves faced with the temptation to handle their internal succession or external practice sale on their own. Whether it’s because they know and trust their successor or they are trying to save on third-party fees, the perceived benefits of a DIY practice sale are overshadowed by the costs that come with inexperience. Truth is you don’t know what you don’t know. The internet if full of conflicting information and relying on that information could blind you to unexpected risks and challenges that could cost you dearly.
There are a number of reasons why you shouldn’t try to handle your practice sale on your own.
Sellers who DIY their practice sale are more likely to sell for less than it’s worth. This is because they have not taken the time to get a professional valuation, nor do they have an experienced consultant advocating on their behalf. This is especially true in uncertain markets, like the current pandemic, when many “experts” are advocating that practices be sold at a discount to reflect the current, and more importantly, temporary state of the market. Sellers need someone advocating on their behalf so that they can fully realize the equity they have built in their practice. It should reflect not only where the practice is now, but where it will be in the near future.
Too often, DIY practice sales fail to develop a sound and complete transition plan. This results in a confusing and dissatisfying experience for clients. This often leads to higher attrition rates and an unhappy buyer who may or may not seek retribution.
Because advisors are not experienced sellers, they don’t know what challenges and risks exist and how to properly protect themselves. This is also true for buyers, who don’t properly build claw backs and other safeguards to protect the value of the practice relative to any loans incurred in order to purchase the practice. An experienced consultant not only knows what challenges exist, they can also help both parties identify opportunities and put safeguards in place to ensure a good deal for everyone involved.
When it comes to your practice sale, there are no do overs. It’s not something you want to approach lightly. Working with an experienced successions team ensures that you not only get the best deal, it also ensures a smoother transition for your clients and your team. You only get one chance to sell your practice. Its critical to do it right.
Anthony Whitbeck, CFP®, CLU®: July 28, 2026
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