The clock’s ticking, and when it comes to the fast-paced realm of M&As, both buyers and sellers must learn to set realistic expectations regarding the price of what a practice is actually worth.
In this week’s special Hot Mic episode of Advisor Talk, Elite Consulting Partners CEO Frank LaRosa is joined by Stacey Frank, Executive Vice President for Elite Consulting Partners, and Vince Leto, Director of RIA Consulting for Elite Consulting Partners. The three speak on a hot topic – exploring the often overlooked, and emotional, side of buying and selling. During the honest conversation, they offer unique perspectives into how emotions, such as greed, can cloud the judgment of a transaction diminishing the overall value for all the stakeholders involved.
Today’s show highlights include:
*Distinguishing between inflated numbers and the genuine value of a practice in order to achieve leverage in negotiations.
*A breakdown of the factors that matter and make an impact on the value of a practice.
*The importance of understanding the value proposition of the buyer, both culturally and economically, to determine if it is a right fit.
*How true value extends beyond monetary figures and not allowing money to be the primary influencer when making a life-changing decision.
*An explanation of how there will never be that one “perfect” deal; and instead, discovering perfect deals that fit into what you are truly trying to accomplish for long-term success.
Today’s discussion between Frank, Stacey, and Vince takes a long-term perspective on business valuation, emphasizing the serious endeavor that is buying and/or selling a practice. Understanding the factors that impact valuation in the RIA space is crucial, as is discerning between what price is realistic and what isn’t. With careful planning, open conversations, and genuine understanding, both parties involved can maximize the potential success of M&A transactions.
