Loans for Mergers, Acquisitions, and Growth More Readily Available to Financial Advisors
SAN DIEGO, July 10, 2013 /PRNewswire/ — Succession Link, a company that provides business consulting and an online marketplace for buying or selling advisory practices, recently announced the formation of a strategic alliance with PPCLOAN(TM), a leading provider of business financing for investment professionals.
Since its formation in 1998, PPCLOAN has lent $1.1 billion to service sector cash flow based businesses, with a large portion of that committed to mergers and acquisitions. In 2012, they identified a need for similar services in the RIA Marketplace, and have since expanded their services to fill this niche.
According to Co-founder and manager of Succession Link, Phillip Flakes, selling advisors are inundated with buying advisors that are not qualified or lack the financing necessary to purchase a practice. “We believe this new alliance will give our selling advisors and RIA’s more viable, qualified, ‘buying’ candidates, enabling them to sell their practices more efficiently. It will ultimately bring more autonomy and flexibility, allowing them to focus more on the ‘who’ and less on the ‘how,’” he says.
PPCLOAN president, Paul Clarke, says he also sees the new alliance as being a good fit. Noting that because Succession Link doesn’t charge transactional fees, listing fees or membership fees to sellers, its services are unique. “We’re hoping that we can take it one step further by offering financing that, previously, was often not available,” he says.
Dustin Mangone, Director of Investment Advisor Service & Relationships Manager, PPCLOAN, adds that the conventional financing his company offers is an alternative to that offered through the Small Business Administration (SBA). “Through our conventional RIA financing program, the industry now has a more efficient and streamlined product available for M&A transactions. The availability of conventional financing offers the industry a fixed rate product and results in less paperwork, faster approval decisions, a shorter closing process, and no personal collateral requirements.”
In comparison, PPCLOAN offers a fast and efficient loan service. “And we’re not as concerned about the physical aspects of the business, but instead look more at the value of the “book” that is being purchased and the ability of the buyer to maintain that value,” says Mangone.
Succession Link is a solution that provides financial advisors with a platform for buying and selling financial service practices. It also provides advisors with access to resources that aide in the transaction process. Currently the Succession Link marketplace has 39 practices listed for sale that total over $1.2 billion in collective assets.
BIOS of MANAGING PARTNERS
Nicholas Gudz and Phillip Flakes are co-founders and managing partners of Succession Link and StarPoint Consulting Group – The Financial Advisor Placement Firm and are considered transition experts to highly successful, high-producing financial advisors.
SOURCE Succession Link