Top Tick Your Highest T-12 in Years

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If your business is not portable, it will be discounted in your deal.

You remember the names of each and every stock you sold at the top.  You also remember exactly how you top-ticked the trade.  Chances are your acumen and analysis were only pieces of the top-tick timing.

It is the same with moving firms.  Optimizing your move includes several factors.  Some are quantifiable and some are not.

Valuing Your Business
With rising markets, we see: rising production, more syndicate, new C-suite accounts, and an increased risk tolerance in your clients.  You may be tracking your highest T-12 in years.  However, if the business is not portable, it will be discounted in your deal.  Firms are examining your book with a microscope these days, taking out anything that feels sticky.  Alternatives are automatically knocked down unless you can show that they are liquid or that they will travel platforms.  Likewise, syndicate may bump up your numbers, but few firms will consider it repeatable income.  Look carefully at your revenue lines and assess whether they are consistent, repeatable, and portable.  That is the business that will be the basis of your deal.

Buyers’ Market
The major wirehouses are being more selective than ever in their hires.  Assets on the firm’s books are the boats that rise with the tide of great markets.  Right now there isn’t pressure to buy assets the way they did in falling markets.  The prevailing attitude amongst the bidders is the feeling they have the luxury of waiting for the best teams to show an interest in them. Don’t fret, they will pay up for marquee teams, and you want to be that team, in your market.  The marquis teams aren’t necessarily simply the largest. If you have the sizable business that is both portable and scalable, you are a highly desirable team.

Timing is Everything
Timing is the variable that will define a good deal or a top-tick deal.  If the acquiring firm just lost a team in your market, your deal may go up as there is a sudden need to replace the  business ASAP.  A new manager in your city will want to make a strong recruiting statement and be willing to negotiate hard to win your team.  These qualitative issues cannot be predicted or controlled.  They require research, patience, and luck.  You can prepare for your luck by ensuring that your business is the most appealing in your market.  In real estate, when selling a multimillion dollar property it is highly recommended to use a professional stager. They will remove your family portraits and the kids’ artwork from the fridge, homogenize your color palette, and purposefully make you home a place that a stranger could envision as their own.  Make your book hassle-free and you will be able to command more when the acquiring firm recognizes the ease of doing your business. All of it.