Brandon Chapman, principal and certified financial planner with SaaS Wealth Insurance in Vancouver.Supplied
In Buy the Book, advisors discuss their experiences acquiring a book of business, from practice valuation to client retention.
Brandon Chapman, a 35-year-old principal and certified financial planner with SaaS Wealth Insurance in Vancouver
After starting out in the insurance business in 2015, Brandon Chapman branched into financial planning. He started his own firm, SaaS Wealth Insurance in 2021, and built his book of 150 clients organically, with the goal to grow his practice to around 350 clients one day. He has one associate advisor and an administrative assistant on his team.
At a fund company presentation in 2019, Mr. Chapman met an independent financial planner, a 40-year veteran of the industry. The financial planner didn’t have a succession plan, and his clients occasionally called him out about it. Busy mapping out client retirement projections, he needed a plan of his own.
For the next three years, Mr. Chapman spent time with the seller, getting to know his processes and some of his clients.
“It was more of a relationship-building experience,” Mr. Chapman explains, with no formal plan to buy the business.
The book
The seller liked that Mr. Chapman also focused on financial planning and estate planning. He just needed more time to figure out his retirement date.
By 2022, they discussed a more formal arrangement. The first part of the deal was Mr. Chapman agreeing to become the seller’s “emergency transition plan” should the seller face sudden death or disability.
His book was made up of 200 families, mainly a clientele of seniors who were withdrawing from registered retirement income funds (RRIFs).
“Technically, that’s negative revenue from the RRIF clients, but their net worth has been growing faster than their redemptions. They have good financial habits,” Mr. Chapman says.
Many of the clients’ adult kids also were part of the book of business. Mr. Chapman liked the intergenerational possibilities and he had the chance to meet a few of the younger clients in advance.
“There was some confidence to the parents that what they’ve built isn’t going to be squandered,” he says. “And for the kids, there’s trust they’re not having to work with an older guy who doesn’t understand them and their situation.”
The transition
From 2022 to 2024, Mr. Chapman worked with the younger clients at first, with the seller making introductions to other clients. He attended most client meetings with the seller as the lead advisor.
The seller was experienced at retirement income planning for his older clients, while Mr. Chapman appreciated having the extra years to get to know each client’s needs alongside the seller.
Then, in 2024, the seller and Mr. Chapman handwrote letters to every client officially naming him as the successor. Soon afterward, they scheduled joint meetings. Mr. Chapman believes the seller’s presence provided clients with a lot of comfort, which drove the 95 per cent retention rate.
By January, 2025, Mr. Chapman became the lead advisor. He bought office space in Vancouver’s Terminal City Club, offering clients an elevated experience that was in line with the seller’s more traditional digs.
But Mr. Chapman did make some changes to the practice, adopting lower-fee products such as exchange-traded funds and moving to more digital communication for younger clients. The firm now sends clients newsletters by e-mail, is active on social media and updates client information electronically.
“Many clients were happy to see the transition, as it gave them better access to information from us throughout the year,” he says.
Mr. Chapman hosts three client appreciation events a year for clients who value networking and building their own business profile.
The price
Mr. Chapman paid what the seller asked for, the industry average of 2.5 times recurring revenue for the book. He financed the lion’s share of the purchase using his personal home equity line of credit.
“The interest rate was quite favourable. I did get a small loan from my dealer, but that was 1.5 per cent more than the home equity,” he says, adding he can deduct the interest through his personal line of credit for the purposes of earning business income.
He paid the seller in two phases. “He didn’t demand everything upfront and was quite flexible to support the transition.”
Advice for buyers
Don’t rush is the best advice, Mr. Chapman says. Buyers need time to ensure the clients fit their business.
“There had to be several boxes checked for me to consider buying the book,” he says.
He also advises buyers to do their due diligence by checking the seller’s compliance history.
“I didn’t want to be buying a problem,” he says, noting the seller passed with flying colours.
Are you a financial advisor or financial planner who recently bought a book of business? Globe Advisor would love to speak with you about your experience. Candour, especially around the finances, is appreciated, and your name and photo will be used for the column. Please e-mail dgage@globeandmail.com and include a brief synopsis of your situation.