Succession Lending Center provides bank financing to independent financial advisors to promote small business ownership. It offers immediate liquidity, longer loan terms and lower payments than typical seller financing. The 12-stage loan process includes valuation, risk analysis, and lender selection. There is high demand but low supply of advisory practices for sale due to most advisors never retiring. Succession Lending aims to connect advisors and banks that historically have not interacted due to lack of experience and understanding on both sides.

1. ADVISORY PRACTICE
FINANCING
SCOTT WETZEL, JD – MANAGING PARTNER
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

2. SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 2
Who is Succession Lending?
OUR MISSION:
Provide timely and cost
effective bank financing to
independent and registered
financial advisors to promote
the preservation of small
business ownership in the
financial services industry.

3. What we provide:
• Immediate liquidity
• Longer terms and lower monthly payments
• Competitive rates and terms
What you provide:
• Financing up to 100% of purchase price
• Seller’s note not required
• Buyer equity not required
• Zero out of pocket expenses
Typical Succession Lending
rates and terms:
• 2% origination
• 6.25% – 6.85% fixed
• 7 year term
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 3

4. Succession Lending 12 Stage Process
STAGE 1: National Network
STAGE 2: Pre-Qualification
STAGE 3: M&A Consulting & Valuation
STAGE 4: Documentation
STAGE 5: Cash Flow Analysis - Current Market
STAGE 6: Cash Flow Analysis - Market Downturn
STAGE 7: Six Category Practice & Transaction Risk Analysis
STAGE 8: Aggregate Risk Score
STAGE 9: Submission to Our Network of Lenders
STAGE 10: Lender Selection with Advisor
STAGE 11: Closing
STAGE 12: Loan Monitoring
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 4
Managing Directors
Advisory Loan Underwriting Team
Investment Banking Consulting Team
Applicant
Advisory Loan Underwriting Team
Advisory Loan Underwriting Team
Investment Banking Consulting Team
Advisory Loan Underwriting Team
Managing Partners
Managing Partners
Funding Institution
Advisory Loan Underwriting Team

5. Valuations – The Market
Market Driven Valuation =
2X Gross Revenues2X
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 5

6. 6
Why Acquire?
VALUATION COMPARISONS
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

7. Supply and Demand Dislocation
RESULT: Unbalanced demand (competition) driving up prices
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 7
100,000
advisors set
to retire by 2025
90%
Of IBD advisors
never retire
50
Buyers for every
advisory practice seller

8. Advisory Loans: An Awkward Courtship
• 90% of advisors have never entered into a commercial loan
• Lack experience and relationships in commercial banking
• 95% of banks have never entered into an advisory loan
• Lack experience and knowledge of how to evaluate an advisory practice
Problem: Advisors don’t know who to reach out to and then lack
experience on how to present their application. Banks lack understanding
of how to evaluate advisory practices
Result: Historically, minimal financing available to advisory loan market
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
8

9. SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
9
A New Component in
the Borrowing Process:
Competition

10. Summary
• Bank Financing is the game changer the industry needs to increase
the number of transactions.
• Be patient with the Seller and Buyer. It is an emotional conversation.
• Prepare
• Collaborative Partnership
• Next Steps
10SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

11. Next Steps:
Loan Pre-Qualification
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 11

12. Next Steps: Preferred Purchaser Program
• Sellers want immediate liquidity at
retirement; come prepared
• Designation allows you to convey
your ability to acquire
Show Sellers the Options
Financing = Urgency
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 12
43%
of potential sellers
would consider selling,
if they knew financing
was available

13. Preferred Purchaser
Program
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
13

14. Q&A
SUCCESSION LENDING CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
14
(866) 567-6282
www.SuccessionLending.com