Aug 19
Time to Sell or to Grow? by Angie Herbers - ThinkAdvisor
What You Need to Know
- M&A activity substantially increases in bear markets.
- To gain the maximum amount of growth, firms should double down on organic growth and improve client service.
- Selling should be based on a timeline that fits your firm's objectives, not on what the rest of the market is doing.
When’s the right time to sell an advisory firm?
It may not be immediately apparent, but trends in organic and inorganic growth tend to correlate strongly with stock market performance.
When the market is on a bull run, advisors are more likely to focus on organic growth and serve their current clients. After all, portfolios are going up, so that means revenue often is going up, too.
When the market goes bearish, though, the script flips. It’s easy for advisors to get overwhelmed or feel frustrated as the increase in service they must deliver wears out even the best advisors. Often, these stressful periods occur when advisors are deciding whether to keep their firm or sell it.
