Buyers of retirement plan practices look for books that are well organized, well documented and easy to transition. None of the steps below requires a decision to sell. They simply put you in a stronger position whenever you choose to.
1. Build a clean plan inventory
For each plan, record the sponsor, recordkeeper, plan type, assets, participants, service model, fee arrangement and renewal or review dates. One accurate spreadsheet answers most of a buyer's first questions.
2. Update service agreements
Make sure every plan has a current, signed agreement that matches the services you actually provide. Missing or outdated agreements slow down a transition.
3. Confirm 408(b)(2) disclosures
Check that each plan sponsor has received a current fee disclosure. Accurate disclosures show a buyer that the book is in good order.
4. Document your fiduciary process
Keep investment policy statements, fund monitoring reports and committee minutes organized by plan. A buyer can continue a documented process without gaps.
5. Map your recordkeepers
Group plans by recordkeeper and note the advisor-of-record process for each. Buyers often prefer books concentrated on recordkeepers they already use.
6. Review your compensation arrangements
List how you are paid on each plan and whether that pay depends on your broker-dealer or RIA affiliation. Arrangements that could change in a sale should be flagged early.
7. Reduce key-person dependence
If every committee relationship runs through you alone, start introducing a colleague or service lead to your plan sponsors. Relationships that already involve a team transfer more easily.
8. Plan for your staff
Decide which team members are central to service and how you would want them treated in a sale. Buyers often value experienced service staff highly.
9. Note attached business
Wealth management for business owners, participant advice, nonqualified plans and insurance relationships can matter a great deal to some buyers. Document them separately from the plan book.
10. Line up your own advisors
Choose an attorney and a CPA with advisory practice transition experience, and speak with your compliance department about any rules for your firm.
When you are ready to explore, you can list your practice on RPPEx for free. Your details stay anonymous until you choose to engage with a specific buyer.