Financial Advisors Want to Know: How to Finance an Advisory Firm Acquisition | Ep. 114 Greg Prokott

Welcome to the Financial Advisors Want to Know Podcast, I’m Catherine Tindall, a CPA with Dominion where our focus is helping financial advisors navigate income tax planning and compliance for their firms.

In this episode of Financial Advisors Want to Know, Catherine Tindall, CPA, sits down with Greg Prokott, Managing Partner at Advisor Financing, to discuss the financial realities of buying, selling, and transitioning an advisory firm.

With more than 30 years of experience in financial services, Greg brings a lender-focused perspective to advisory firm acquisitions. He explains how acquisition financing has evolved, the differences between conventional loans and seller financing, and what banks actually evaluate when deciding whether to finance a deal.

Key Takeaways:

Start preparing for an acquisition well in advance. Advisors should ideally begin conversations about financing two to three years before a potential purchase, giving themselves time to strengthen their financial position and address potential obstacles.

Understand what lenders actually evaluate. Banks look beyond the cash flow of the practice being acquired. The buyer's personal liquidity, existing debt, team capacity, and ability to withstand financial setbacks all influence financing decisions.

Know what your advisory practice is really worth. Revenue alone doesn't determine value. Profitability, client demographics, asset flows, operating expenses, and the structure of the business can significantly affect a firm's valuation.

Choose a financing structure that supports the transition. Conventional financing, seller notes, and staged ownership purchases each have different advantages. The right structure should account for cash flow, client retention, and the needs of both parties.

Approach internal succession as both a financial and relationship decision. Differences in valuation expectations, employee contributions, and ownership responsibilities can create tension. Early communication and thoughtful deal structuring can help make the transition smoother.

Connect with Greg:
https://www.linkedin.com/in/greg-prokott/

Greg's website:
https://www.advisorfinancingllc.com/

Connect with Catherine:
https://www.linkedin.com/in/ctindallcpa/

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https://dominion-enterprise-services.kit.com/9944b047d9

Contact Catherine's Team:
admin@dominiones.com

Looking for a more holistic relationship with your taxes? Book 15 minutes to have a coffee chat with Catherine to see if you could be doing more: https://calendly.com/ctindall/podcast-getting-to-know-you

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Financial Advisors Want to Know Podcast: How to Build a Team That Grows With Your Firm | Ep. 113 Jill Barnett

In this episode of Financial Advisors Want to Know, we sit down with Jill Barnett, founder and principal of Valley Consulting Partners and co-founder of The Vested Network, to discuss the people side of building and growing a financial advisory practice.

As an advisory firm grows, the challenges often shift from acquiring and serving clients to hiring, delegating, developing, compensating, and retaining the right people. Jill shares what advisors should consider when making their first hire, including the important distinction between W-2 employees and 1099 contractors, identifying which responsibilities to delegate, and finding people who will represent the firm well with clients.

Key Takeaways

Your first hire is a major transition. Moving from doing everything yourself to delegating requires clarity around the tasks, responsibilities, and type of person you actually need.

Structure becomes more important as your team grows. Consistent meetings, clear workflows, and greater visibility can reduce micromanagement and keep everyone moving in the same direction.

Employee development matters just as much as task management. As firms grow, leaders need to spend more time discussing career paths, mentorship, compensation, benefits, and opportunities for growth.

Succession planning should include your employees. Your team often holds important client relationships, and involving key people in the transition can help preserve continuity and retain talent.

Start succession conversations before everything is finalized. Firm owners can begin communicating with potential successors without guaranteeing an outcome, while making sure effort and reward remain aligned throughout a multi-year transition.

Whether you’re making your first hire, managing a growing advisory team, or beginning to think about succession, this episode offers practical ideas for building the people and processes that can support your firm for the long term.

Connect with Jill:
https://www.linkedin.com/in/jill-barnett04mt/?isSelfProfile=false

Jill's website:
https://valleyconsultingpartners.com/

Connect with Catherine:
https://www.linkedin.com/in/ctindallcpa/

Sign-up for our newsletter:
https://dominion-enterprise-services.kit.com/9944b047d9

Contact Catherine's Team:
admin@dominiones.com

Looking for a more holistic relationship with your taxes? Book 15 minutes to have a coffee chat with Catherine to see if you could be doing more: https://calendly.com/ctindall/podcast-getting-to-know-you

Sign-up for our newsletter for the only tax update you’ll need to read and future episodes here and how to get in touch with Catherine: https://dominion-enterprise-services.ck.page/9944b047d9

Visit us at DominionEs.com

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Financial Advisors Want to Know: The Decisions That Drive Advisory Firm Growth | Ep. 112 Angie Herbers

Welcome to the Financial Advisors Want to Know Podcast, I’m Catherine Tindall, a CPA with Dominion where our focus is helping financial advisors navigate income tax planning and compliance for their firms.

In this episode of Financial Advisors Want to Know, I sit down with Angie Herbers, Managing Partner of Herbers & Company, to talk about the decisions that shape the growth, profitability, and long-term value of an advisory firm.

Drawing on more than two decades of experience working with advisory firms of all sizes, Angie explains why solving a business problem often requires looking beyond the most obvious solution. A compensation issue might actually be a service-model issue. A capacity problem might require a different hiring strategy. And preparing for an eventual exit may mean focusing less on maximizing short-term profitability and more on maintaining sustainable growth.

Key Takeaways:
Look beyond the obvious problem. A compensation or hiring challenge may actually point to a deeper issue with capacity, profitability, or the firm’s service model.

Hire based on what you want to achieve. Support staff can provide immediate relief, while adding an advisor can create significantly more capacity for future growth.

Design compensation around your culture and goals. Before focusing on numbers, consider the type of firm you’re building, the people you want to attract, and how you want to serve clients.

Don’t lose sight of the fundamentals. Industry trends come and go, but strong revenue, profitability, capacity management, client experience, and talent remain the foundation of a healthy advisory firm.

Keep sustainable growth a priority when planning an exit. Rather than maximizing short-term margins at the expense of growth, firms approaching a sale or merger should continue building a growing, reasonably profitable business.

Connect with Angie:
https://www.linkedin.com/in/angieherbers/overlay/background-photo/

Angie's website:
https://www.herbersandcompany.com/

Connect with Catherine:
https://www.linkedin.com/in/ctindallcpa/

Sign-up for our newsletter:
https://dominion-enterprise-services.kit.com/9944b047d9

Contact Catherine's Team:
admin@dominiones.com

Looking for a more holistic relationship with your taxes? Book 15 minutes to have a coffee chat with Catherine to see if you could be doing more: https://calendly.com/ctindall/podcast-getting-to-know-you

Sign-up for our newsletter for the only tax update you’ll need to read and future episodes here and how to get in touch with Catherine: https://dominion-enterprise-services.ck.page/9944b047d9

Visit us at DominionEs.com

Connect with Catherine on LinkedIn