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Done for you in 5 minutes.
A comprehensive, legally structured contract draft for selling or acquiring a pension and retirement advisory book of business. You walk away with a ready-to-customize agreement covering asset transfer, client transition, payment terms, and non-solicitation clauses.
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Selling or acquiring a retirement and pension advisory book of business is the culmination of decades of trust-building, making the transition agreement far more than a standard asset purchase. You need this contract when you are preparing to retire, merging practices, or executing a strategic acquisition of structured client accounts and recurring fee streams. A high-quality agreement does not just transfer assets; it acts as a roadmap for client retention, preserving the delicate relationships with plan sponsors and individual participants that drive the book's valuation. To protect both parties, a superior draft clearly defines asset valuation formulas, structured transition timelines, earn-out provisions linked to client retention, and ironclad non-solicitation clauses. By establishing explicit operational guidelines and clear payment milestones upfront, this agreement minimizes post-sale disputes and ensures regulatory compliance with FINRA, SEC, or state authorities, turning a complex professional milestone into a smooth, mutually profitable handoff.
Valuation is usually calculated as a multiple of recurring revenue, typically ranging from 1.5 to 3 times trailing-twelve-month recurring fees or commissions, depending on client concentration and retention history. A portion of this value is paid upfront, with the remainder structured as an earn-out tied to the successful transition and retention of clients over twelve to twenty-four months.
Yes, regulatory bodies like the SEC and state regulators require affirmative or negative client consent depending on the nature of the advisory contracts being assigned. The sale agreement must include a specific timeline and method for sending transition notification letters to ensure all accounts migrate legally and smoothly.
A standard transition period ranges from three to twelve months, during which the seller introduces the buyer to key plan sponsors and individual clients. The contract should explicitly define whether this assistance is part of the purchase price or compensated separately via an hourly consulting rate or salary.
If a major client departs shortly after closing, a well-structured earn-out or clawback provision in the agreement automatically adjusts the purchase price downward to reflect the lost revenue. This protects the buyer from paying full valuation for assets that do not successfully transition, sharing the risk of client attrition between both parties.
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