The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Adviser edge, dgage@rmpublishing.com.
(17/06/03)
(June 17, 2003) Buying a business book is not for the faint of heart. If done correctly, the process can take months, notes Robert O’Connor, an independent management consultant based in Vancouver.
“I know someone who took a year to sell his practice to another advisor,” he told participants of the national Advocis conference in St. John’s in Newfoundland. “Don’t be in too much of a hurry to complete the transaction – extra caution pays off. Beware of anyone looking to sell.”
While most sales advisors traditionally value their companies based on a formula (for example, charging 1.5 to 2.5 times trailer fees on mutual fund/separate fund assets), O’Connor says it can’t hurt that buyers also check the seller’s financial statements. He noted that a practice that shows an operating profit as a result of the principal using all allowable expenses can change dramatically when those expenses and other items are legally removed.
More ANDyou two Cconference Csurplus
A little early summary with the president of the association
The head of Maritime Life reminds advisors that the real value is in relationships with clients
Usage: the good, the bad and the ugly
The Association elects a new National Board for 2003-2004
A “bold and aggressive” plan to change the regulatory model was presented
Valuable tips for purchasing a business book
The panel discusses the economy, investing, the US and good times ahead for Canada
The speaker shares tips that will take your clients’ events from average to amazing
BONUS TOOL: Your customer communication guide for the last six months of 2003
Return to the main page summarizing the Advocis conference
Buyers need to determine what type of goodwill the book has. The goodwill constitutes 90% of the sales price. However, personal goodwill, as opposed to commercial goodwill, can significantly reduce the seller’s asking price because customers may have developed a strong relationship with the seller and may not want to continue dealing with the buyer.
“Just think if your dentist sold his practice to someone else and how quickly you would rush to that new dentist,” O’Connor said. “You need to look at how the buyer will be able to acquire these customers from the seller.”
One solution, suggested by O’Connor, is for the buyer to negotiate for the sales advisor to stay on for at least six months during the transition period.
Buyers should expect to sign a non-disclosure agreement, along with a non-compete clause, a non-disclosure clause and an order stating that the information disclosed will not be used for their own benefit, O’Connor says.
O’Connor recommends that buyers, in turn, enter into a standstill agreement, which is a document stating that the seller cannot transact with anyone else while negotiating with the buyer. “I’ve seen deals where people look at a purchase and the seller uses all that information to pass it on to someone else and use it strategically to get a better price.”
If at any point discussions do not match the seller’s initial description of the book, a potential buyer should not hesitate to bail, O’Connor says. “Don’t let misplaced pride color your judgment.”
• • •
Composed by Deanne Gage, Advisor’s Edge, dgage@rmpublishing.com.
