1. Finishing Well Retirement Options for Financial Advisors
John Williamson- Wells Fargo Advisors Financial Network
Innovation and Growth

2. Finishing Well Means.. Still being part of the business
Staying involved after the sale
Customizing my plan to sell
Getting to finally travel
Being able to pick my successor
My clients are taken care of
Moving to Arizona
Volunteer More
Making a clean break
Taking care of my team
Doing more charity work
Finishing Well
Means..
Moving to Colorado
A good client experience
Going back into teaching
Moving to Florida
Getting paid for my practice
Still being part of the business

3. Talking Points M&A Trends Retirement Options to Consider Communication
Planning Ahead and Next Steps

4. How do I get started? Why do advisors How do I interpret a Valuation?
sell their practice/business?
How do I interpret a Valuation?
How do I evaluate potential buyers?
Do I need to have my practice valued?
How do I tell my clients?
Who pays the closing costs?
What financing options are available?
What is the difference between a merger and an acquisition?
When is the right time to retire?
What do sellers miss most?
How do I prepare to acquire a practice?
What are barriers to moving?
How do I tell my staff?
How do I prepare to sell my practice?
What is the difference between exit and succession?
What generally is the process?
Who do I use to prepare the legal documents?
How do I get started?

5. Business Transition Trends
Merger and Acquisition Highlights
Merger, Preparation, Geography, Exit
Use of Third Party Resources
Examples: Truelytics, Live Oak bank, PPC Loan, Oak Street Funding, etc..
Finding a Match
- Fit & Networking

6. Retirement Options to Consider…
General Description
Time Horizon
Client Experience
Considerations
Sunsetting
Plan
Employee advisor/ wirehouse retirement option- revenue share sale.
Terms and conditions are prescribed by the Broker Dealer.
The sunsetting time horizon is five years or less.
Minimal operational changes for clients.
The broker dealer provides the solution for the customer and the advisor. (BD is more involved)
Less customization but turnkey; Broker Dealer provides terms of agreement. Advisors may lack choice of successor; Tax implications (compared to other options)
Exit
Asset sale between two advisors/ practices. Independent sale option. Negotiated terms.
Typically involves down payment and seller financing.
Deal structure typically over 1-3 years often resulting in the complete sale of the practice.
Assuming the right fit, good client communication strategy should lead to a good transition and client experience.
Customized retirement plan offering flexibility. Will require third party resources.
Poorly crafted client communications can lead to client attrition, client communication planning needed.
Succession
Gradual sale to another advisor (next generation) typically within the seller’s practice.
Typically a phased approach that takes place over 5 to 10 years.
Continuity for clients as the successor is usually known to them. The positive client experience occurs due in part to a gradual and planned transition.
Seller is able to customize terms of succession and successor. Option for independent advisors. Will require third party resources & succession consulting.
Longer time horizon- Planning ahead needed.
Private
Listing
Independent Advisor contracts with a third party listing service (typically) and sells their practice utilizing that listing service. Negotiated terms.
A sale that takes place in generally less than 3 mos. Terms of sale vary. Accelerated Exit.
Clients experience change and may experience moving to another Broker Dealer.
The listing service provides the match for the seller and advisors need to conduct efficient due diligence. Option for independent advisors.
Generally a contractual obligation for the Advisors and requires an efficient client communication plan.

7. Client Transition Client Communication Communication Strategy
In the absence of communication…
Communication Strategy
Call, Letter, Call
The Operational Process
Project Team

8. Project Team Checklist Finish Well Program Example
Valuation
Deal Structure
Timing
Project Team Communication
Outstanding Loan Analysis
Client Communication Strategy
Client Communication (Statements/ BD Notification)
Financing
Business Overlap/ Accommodation (ex. Portfolio Discretion)
Practice Structure (ex Multiple Locations)
Term Sheet/ Letter of Intent
Documents/Contracts

9. Planning to Finish Well
Practice Valuation
Understand Firm (your BD) Resources and Options
Interview Third Party Resources
Build a Networking Plan?
Continuity Plan Needed?
Consult with Your CPA
Consult with Your Attorney

10. Example Third Party Resources
www. truelytics.com
www. liveoakbank.com
www. successionresource.com

11. How do I get started? Why do advisors How do I interpret a Valuation?
sell their practice/business?
How do I interpret a Valuation?
How do I evaluate potential buyers?
Do I need a valuation?
How long will a sale take?
What financing options are available?
What is the difference between a merger and an acquisition?
When is the right time to retire?
What do sellers miss most?
How do I tell my staff?
How do I tell my clients?
How do I prepare to sell my practice?
What is the difference between exit and succession?
Who do I use to prepare the legal documents?
What generally is the process?
How do I get started?