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Key Changes To Make During A Partner Buy-In

Key Changes To Make During A Partner Buy-In
Key Changes To Make During A Partner Buy-In Buying into a financial advisory practice can be a very exciting endeavor. The potential to grow professionally and personally are what often drives advisors to make this change. An equity purchase doesn’t just impact the advisor. It has a tremendous impact on the practice too, often requiring some structural and cultural changes that will reflect the new dynamic created by the new partner. Updated Entity Documents One of the first things to change are the legal documents that define the structure and ownership obligations of the practice. If using third-party financing, a lender will require updated entity documents before the purchase can be completed. Articles of incorporation, purchase agreements, stock certificates, partnership agreements, and any other legal documents impacted by the purchase must be updated. Cultural/Personal Dynamic Shifts Adding one or more partners also changes the dynamics and relationships among

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