Many attorneys service clients who are brokers and/or financial advisers in connection with various aspects of their business. In doing so, such attorneys are generally tasked with being well-versed the regulatory, contractual and litigation concerns these particular clients face. Due to the constant evolution of the financial advisory space, practices change hands by way of sale and merger on a fairly regular basis. These transactions are incredibly nuanced, subject to regulatory considerations, and require substantial due diligence the consideration of a number of objective and subjective factors, prior to the consummation of any sale. Also critical to the sale process is the proper valuation of a practice, which is in large part based on the continuing revenues generated from an established customer base. Finally, these transactions are often financed over time consideration should be made in connection with financing any deal.

The purpose of this CLE lecture is to provide a general overview of these types of transactions, to provide a thorough understanding of due diligence process and to highlight other critical components of the transaction. After completing this course, attorneys shall be well-situated to counsel their advisor clients in connection with the purchase and sale of a business.