Valuation Expert FP Transitions: On M&A, Growth, and Maximizing Enterprise Value

A conversation with Brad Bueermann, CEO, FP Transitions

Fidelity’s latest M&A report signaled that despite headwinds of a turbulent market and interest rates, as well as the regional banking crisis, the M&A wave is still flowing strong.

The first quarter of 2023 saw 67 acquisitions – 10 more than the previous quarter’s 57 – representing some $83.5B in client assets.?

No doubt, there’s still a hunger for quality firms with strong P&Ls and growth trajectories.?

And it’s this very space that firms like FP Transitions play in.

The firm was founded in 1999 by industry-legend David Grau, Sr., who literally wrote the book on?Buying, Selling and Valuing Financial Practices?back in 2016.

FP Transitions became one of the standouts in the wealth management world, specializing in the valuation and analysis of the intangibles that make advisory practices unique and valuable.?

They do this by employing strategies that build upon a lifetime of work and trusted client relationships—and executing a succession plan designed to both realize value for the founder and perpetuate the business for the next generation of advisors.

Earlier this year, FP Transitions reached a milestone, performing over 15,000 independent business valuations.?

The firm’s CEO, Brad Bueermann, joins Louis Diamond to discuss all that and more, including:

• FP Transitions background—and how they developed their unique methodology.
• The firm’s own next gen transition from David to Brad—and how the processes they use with wealth management clients played an integral role.
• Where firm valuations are today—and what he expects for the future.
• What buyers were most concerned about in the past—and how that differs today.
• Multiples and enterprise value—and what business owners need to pay attention to maximize both.
• Identifying the value drivers—and how to develop a plan to increase value over time.
• Creating a win-win scenario in a transaction—and why FP Transitions sees this as the best possible route for all sides.

It’s an episode filled with practical advice and intelligent conversation around the evolution of independent firms with key takeaways on achieving maximum enterprise value.

Related Resources

MaxCeV? -?How to Maximize Your Career Enterprise Value - This formula seeks to provide a process by which an advisor can “calculate” the sum total of 4 key factors—to conceptualize what their career enterprise value really is and how to achieve it. It’s one of the central tenets of Diamond Consultants’ process in guiding advisors through due diligence. Download->

Industry Update on M&A: Why Buy? Tips for Those with Their Sights Set on Becoming an Acquirer - When it comes to M&A, there are plenty of independent business owners and wirehouse advisors who have their sights on becoming acquirers, yet it’s an incredibly competitive environment with more buyers than sellers. This episode looks at the buy-side perspective, the attributes needed to become an attractive acquirer, the characteristics of prospective targets, and more. Listen ->

Industry Update on M&A: If You Build It, Will They Buy It? - For advisors who are reviewing their firm’s retire-in-place program, considering a recruitment deal, or looking to launch an independent firm, understanding the value on the open market is critical. Part 2 of this 2-part series explores what drives value and how to build a business that will be “attractive” to acquirers and garner the highest valuation at the end of the day. Listen->

How to Optimize Your Business for Growth and Success: 8 Questions Advisors Need to Ask Themselves - Rising above the day-to-day tasks of your “job” to invest time in thoughtful strategizing and planning can be the game-changer you’ve been looking for. Read->

You can also listen to the full episode on our?website , as well as on?Apple Podcasts ,?Google Podcasts ,?Stitcher ?or?Spotify .