Edited by 
Edited by 
Whether you’re ready to set out on your own or you’re looking to grow your business, buying a financial advisor practice can be a great way to help you reach your goals. According to Schwab’s 2025 RIA Benchmarking Study, 41% of firms engaged in merger and acquisition activity over the previous five years. 1 The challenge is finding a book of business that you’re happy with and that aligns with your budget. There are a variety of ways to find the right firm to purchase. Here are some of the factors to consider.
Add new clients and AUM at your desired pace with SmartAsset’s Advisor Marketing Platform. Sign up for a free demo today.
What to Look for When Buying a Financial Advisor Book of Business
Buying an existing financial advisor practice can be exciting and daunting, whether you already own a firm or are branching out for the first time. With an immediate stream of revenue connected to the existing client base, it’s a tempting venture, but there are a lot of things to navigate that can be difficult if you’re not experienced. Chief among those is finding the right practice and making sure you don’t overpay for it. That’s far from all, though.
Here are eight common things that you’ll want to pay close attention to when you try to buy a firm:
| Current Client Base and Retention | Evaluate the firm’s client base and the retention rate. A stable, diverse client roster can indicate strong client relationships and recurring revenue. |
| Financial Performance | Review financial statements for consistent revenue growth, profitability and effective expense management. |
| Compliance | Confirm the firm complies with applicable regulations and has a strong compliance history with no significant unresolved issues. |
| Employee Expertise and Retention | Evaluate the experience and stability of advisors and support staff, especially if you plan to retain existing employees. |
| Technology and Infrastructure | Assess the firm’s technology, cybersecurity and operational systems, along with compatibility with your existing tech stack. |
| Brand Reputation and Visibility | Evaluate the firm’s reputation and market presence. A strong brand can support client retention and future growth. |
| Services | Assess how the firm’s services complement your existing offerings and whether the acquisition creates meaningful growth or operational synergies. |
| Legal and Contractual Obligations | Review client agreements, vendor contracts, leases and other obligations to identify liabilities that could affect the deal terms or purchase price. |
There are plenty of other things to dive into when you’re buying a firm, but these items will give you a very good starting place to determine whether it’s the right choice for you or not.
Client Acquisition Simplified: For RIAs
- Ideal for RIAs looking to scale.
- Validated referrals to help build your pipeline efficiently.
- Save time + optimize your close rate with high-touch, pre-built campaigns.
CFP®, CEO
Joe Anderson
Pure Financial Advisors
We have seen a remarkable return on investment and comparatively low client acquisition costs even as we’ve multiplied our spend over the years.
Pure Financial Advisors reports $1B in new AUM from SmartAsset investor referrals.
Where to Find a Financial Advisor Practice for Sale
Buying a financial advisor (FA) practice is a strategic move that can help bolster your career and business prospects. This venture involves several steps, including identifying potential sales, conducting due diligence, negotiating terms and finalizing the transaction. Here are some of the best places you can find a book of business for sale.
1. Listing Services
Listing services act as digital matchmakers, connecting buyers and sellers of financial practices. They offer a wide range of options and the convenience of searching for potential purchases from the comfort of your office or home.
Some of the listing services you might consider include:
When comparing listing services or marketplaces, look at the volume of businesses offered for sale, as well as the pricing and level of support provided. Some services only link you with a financial advisor who is selling their practice, while others offer a more comprehensive range of services to guide you through the acquisition process.
2. Talk to Your Broker-Dealer
Broker-dealers often hold a treasure trove of information about advisors looking to sell their practices, as they are closely involved in the transactions and business activities of these advisors. Therefore, engaging in a well-planned dialogue with your broker-dealer about potential sales can be a valuable strategy.
Developing and maintaining a strong relationship with your broker-dealer is crucial for this to work. When approaching them about potential sales, clearly communicate your intentions and demonstrate your ability to successfully take over a practice. This straightforward communication, much like a well-rehearsed script, can help you gain valuable insights and possibly lead to opportunities that you might otherwise miss.
3. Ask Your Network
Networking can be a powerful tool in unearthing financial advisor practices for sale. Networking plays a significant role in how many professionals discover new career and business opportunities, so why not land a business the same way? Many advisors who decide to sell forgo listing services and public marketplaces, in favor of spreading the word across their professional contacts.
Effective networking within the financial advisory industry may involve joining professional organizations, attending industry events and leveraging social media platforms like LinkedIn. These avenues can help you connect with potential sellers and gain insights into available opportunities.
4. Attend Advisor Events
Attending advisor events, such as industry conferences or seminars, can provide opportunities to connect with potential sellers. These events also offer insights into industry trends and an opportunity to learn from seasoned professionals, much like a masterclass in the industry. To extract maximum value from these events, prepare a brief introduction or “elevator pitch”, take the initiative in conversations and follow up with contacts after the event.
5. Cold Call or Market Directly to Advisors
Direct marketing, involving reaching out to advisors through cold calling or email campaigns, can be an effective strategy. It allows you to communicate your interests and qualifications directly to potential sellers. However, it requires a personalized approach, persistence and a finely tuned strategy.
The importance of personalizing your approach to each advisor and demonstrating genuine interest in their practice cannot be overstated in the financial advisory industry. Persisting despite initial rejections can lead to successful direct marketing endeavors. This approach can open doors to potential sellers who may not have listed their practices on common platforms, providing additional purchase opportunities.
Build a Better RIA
Drive growth with automation, not headcount using the all-in-one advisor marketing platform.
Are You Ready to Buy a Financial Advisor Business?
Are you contemplating buying a book of business but unsure if you’re ready for such a significant investment? Buying a book of business is indeed a substantial financial commitment that requires careful consideration and preparation. When you’re considering buying a book of business, there are key factors that you need to take into account, such as:
1. Financial Capacity
Can you afford the initial investment, which could range from hundreds of thousands to millions of dollars (depending on the size and quality of the book)? It’s essential to ensure that you have the necessary funds to support this investment without jeopardizing your, or your current firm’s financial stability.
If you plan to borrow, through an SBA loan or some other financing avenue, consider the impact that will have on your firm’s bottom line. Evaluate the cost of borrowing compared to your projected return on investment, as well as additional monthly expenses associated with making loan payments.
2. Management Capacity
Are you prepared for the expanded operations and client base? The acquired book of business will require strategic planning, coordination and supervision to maintain client satisfaction and ensure the business’s smooth operation. If you don’t have the bandwidth, then putting money toward this type of endeavor could be damaging to the firm you’re buying and your existing client base.
3. Time
It can take a lot of time to go through an acquisition process and it can take even more time to bring a new firm full of clients on board. It’s important to know what you’re getting yourself into beforehand. You need to make sure you’re up to the task, and you have the resources needed to make it a success.
4. Goals
Understanding your objectives can help you determine whether buying a financial advisor practice can help you achieve them. In the Schwab benchmarking study, 92% of advisors pursued M&A strategies to boost revenues, AUM and client growth. Sixty-seven percent did so to gain access to a larger talent pool, while 59% sought to create scale. Forty-five percent, meanwhile, leveraged mergers and acquisitions to solve operational issues. Outlining your firm’s purpose and goals for acquisition can offer clarity on whether you’re prepared to undertake the challenge.
Frequently Asked Questions (FAQs)
How Are Financial Advisory Practices Valued?
Valuations for financial advisor firms are typically calculated using gross multiples of revenue or EBITDA. The multiple used can depend on the specifics of the business, including its assets under management (AUM), clientele and fee structure. Advisors seeking accurate valuations may consult with an M&A specialist to better understand the factors influencing the final numbers.
How Do Advisors Finance the Purchase of an Advisory Business?
Advisors who are interested in buying a book of business or acquiring a firm may explore several financing options. Some, for example, might prefer to bootstrap the purchase using cash reserves, if possible. Others may consider small business loans, including SBA loans. And in some instances, the purchasing advisor may work out an agreement with the selling advisor to pay out the purchase price in installments, based on client retention.
What Mistakes to Avoid When Buying a Financial Advisor Practice?
Some of the most common mistakes advisors make when buying a practice include overestimating the firm’s value or relying on a single valuation with no comparisons; ignoring the need for a comprehensive client retention strategy; making buying decisions without considering cultural alignment between firms; and failing to properly document the timeline for completion and responsibilities of both buyer and seller.
Bottom Line
The process of acquiring a financial advisor practice or a book of business is a significant, multifaceted venture. It offers potential profitability from an established client base, but it also comes with considerable challenges and responsibilities. Prospective buyers must grasp critical factors such as financials, the size and quality of a book of business, client retention rates and the valuation methods used. Furthermore, a buyer needs to exercise due diligence, secure financing and plan for a smooth transition. Finding the right one, when you’re ready, can be a huge financial boon to your business.
Tips for Growing Your Advisory Firm
- If you’re looking to scale your business, consider investing in your marketing and lead generation efforts. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
- You may want to find ways to also increase your visibility online. You may want to consider these digital marketing strategies for financial advisors to help you get seen by more potential clients online.
Photo credit: ©iStock.com/kate_sept2004, ©iStock.com/Jonathan Erasmus, ©iStock.com/kate_sept2004
Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- Insights from the 2025 RIA Benchmarking Study. Schwab, https://advisorservices.schwab.com/resource/ria-benchmarking-study-insights-2025.