When it comes to selling a financial planning practice, much of the conversation understandably centres on numbers. Multiples, upfront payments, earn-outs, clawbacks — they’re the headlines of every deal.

But beneath the spreadsheet lies a factor just as important, if not more so: buyer fit.

It’s a subtle but profoundly valuable dynamic. Sellers who find the right buyer not only close stronger deals — they achieve cleaner transitions, preserve client relationships, protect staff continuity, and ultimately realise higher long-term value from their sale.

The challenge? Buyer fit doesn’t show up as a line item on the term sheet. But its impact is very real.

Not All Buyers Are Equal — Even at the Same Price

Let’s start with the obvious: two buyers can offer similar headline valuations, yet the outcomes for the seller can be worlds apart.

Buyer A might stretch to a slightly higher price but lack the cultural compatibility or client handling skills to retain the book long term. Buyer B, meanwhile, might offer a similar number but have a genuine alignment with the seller’s philosophy, a clear integration plan, and proven client retention results.

Over time, Buyer B’s offer is almost always the better deal.

This is especially critical in Australia’s advice market, where relationships and trust play outsized roles in client retention. A better cultural and operational fit enhances not just the experience of the sale — but the durability of the business post-sale.

Quantifying the Unquantifiable: The Real Value of Buyer Fit

While buyer fit feels intangible, its financial impact is clear when you follow the chain reaction:

• Higher client retention post-sale means more earn-out value is realised.
• Better staff integration lowers the risk of losing key people and protects operational stability.
• Fewer post-deal disputes around client ownership or service standards preserve value (and sanity).

   

And critically, buyer fit can be the difference between seeing — or never seeing — your second payment.

Many deals include instalments and clawbacks tied directly to post-sale performance. A buyer with poor integration skills or cultural misalignment increases the risk that clients will leave, revenue will fall short, and contractual milestones will be missed. The upfront price might look good, but if the second cheque never arrives, the true value of the deal collapses.

In our experience at Growth Focus, the difference between a well-matched buyer and a poorly matched one can swing the realised value of a deal by 10–20% or more.

And yet, too many sellers fall into the trap of believing buyer choice is a luxury — something nice to have, but not essential.

The truth is: choice is power.
The more choice you have, the more leverage you hold — not just on price, but on terms, cultural alignment, and the future of your business.

The Hidden Risk of Limited Buyer Pools

Relying on a single interested buyer, or falling into an early exclusive discussion, is one of the biggest risks in practice sales.

Here’s why:

• It limits negotiation power. With no alternative, sellers must accept whatever terms the buyer sets.
• It blindsides sellers to better fits. A buyer in hand feels secure, but there may be a much better fit just beyond view.
• It increases vulnerability to buyer hesitation. If the buyer delays or drags out the process, the seller has little recourse.

Worse, without choice, sellers often compromise on post-sale roles or integration plans that don’t suit their objectives, simply because they feel they have no alternative.

As we often advise our clients: it’s not just about getting a buyer — it’s about getting the right buyer.

Case in Point: The Buyer Who Was Too Good to Be True

Consider the case of an established practice that received early interest from a fast-moving corporate buyer. The offer was strong, the initial meetings were promising, and the seller felt they had struck gold.

However, as the deal progressed, cultural cracks emerged. The buyer’s approach to advice was more transactional, while the seller’s clients valued a deeply personal, high-touch relationship. Staff, sensing the change in culture, grew uneasy. Clients began to ask questions.

Ultimately, while the deal closed, the earn-out provisions were only partially realised. Client attrition spiked post-sale, and valuable staff departures left the buyer struggling to maintain service standards.

What looked like a quick win turned into a slow bleed — all because of overlooked buyer fit.

Growth Focus Insight: Choice Creates Value

At Growth Focus, our process is built around creating choice for our clients.

Through active market engagement, targeted buyer profiling, and controlled competitive tension, we ensure sellers have not just a buyer — but the right pool of buyers.

We don’t just assess headline offers. We help sellers scrutinise buyers’ track records: past acquisitions, client retention post-deal, staff integration success, and cultural compatibility.

Our experience shows clearly:

• Deals with multiple qualified buyers close faster.
• Sellers retain more control over terms and post-sale roles.
• Buyer fit improves, increasing client retention and final deal value.

   

By designing the process to attract aligned, prepared buyers, we help sellers avoid the trap of “first and only” — and maximise both financial and non-financial outcomes.

Closing Reflection: Fit Isn’t a Luxury — It’s Leverage

It’s easy to see buyer fit as a soft consideration, secondary to price and terms.

But in reality, it is the multiplier on every other part of the deal.

• Fit drives client trust.
• Fit keeps staff engaged.
• Fit protects legacy.
• Fit ensures you realise the full value of the terms you fought for.

So while it might not appear as a column in the financial model, make no mistake: buyer fit is worth real money.

And the surest way to find it? Build choice into your process.

Because in M&A, promises are easy — outcomes are everything. A guaranteed X will always outpace a fragile X+ built on poor buyer fit.

👉 Thinking about your exit? Growth Focus helps sellers attract the right buyers and structure deals that maximise both value and fit. Contact us today to explore your options.