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Purchasing a book

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Aug 25, 2005 4:07 pm

I’m new to the forum so I apologize if this topic has been discussed previously.



What advice do you have for how to go about purchasing a book of
business (independent)?  And where can I start looking for
something like this?



Thanks in advance,



SPTRIX

Aug 25, 2005 4:09 pm

I was wondering the same thing....

Pros/cons? Would be good to know

Aug 25, 2005 7:42 pm

Just off the top of my head:

Be sure you have the sellers cooperation in the transition. 
Last thing you want is for them to disappear on vacation for 6 months
right after things get started.
Be sure you have the same mentality and investment philosophy. 
If you want to do technical analysis and time in and out of the market be sure everyone understands that
Be absolutely sure the seller isn’t selling a loaded set of
liabilities that you will be paying off over the next several years.
Pay over time and get a non-compete agreement.


Aug 25, 2005 7:55 pm

This site is pretty helpful: http://www.fptransitions.com/

Aug 26, 2005 10:26 pm

AH! The infamous Holy Grail of the independent "But at RJFS, LPL etc I can SELL my book! I own it!"

But what is it worth? I looked at FPTRANSITIONS. In my state there is a book for sale that has 870k of revenue, is 100% fee based and has over 900 views! WOW!  3 offers and NO sale! For 6 months! I guess you can sell you book, but at what price?

Aug 27, 2005 2:16 am

Anything at all is more than one would get at a firm where the company ‘owns’ the clients.

Aug 27, 2005 3:55 am

Hmmm, Starka, your reputation is not what it use to be… Dunno know about your answer though? Seems these businesses are not as liquid as the recruiters told you they would be. 

Aug 27, 2005 12:58 pm

Recruiters never mentioned selling my business, nor did I.  The truth is that it had nothing to do with my decision to leave. 

Actually, I don't think that our businesses are any more or less liquid than any other business.  If you ask too much for anything, it's not going to sell.

Oh, one more thing....I really can't imagine much that I care less about than how my reputation stands with someone like you.