{"type":"succession_guide","title":"Asset sale or equity sale: how practice deals are structured","lead":"As of Oct 5, 2026, Succession Resource Group calls the asset sale the most common structure in advisory practice sales, and FP Transitions reports that goodwill averages 92% of the purchase price in the deals it describes.","as_of":"2026-10-05","facts":{"summary":"What a buyer actually buys, why client consent comes up, the registration filings, and how the tax allocation works.","key_facts":["The asset sale is the most common structure in advisory practice sales.","An advisory contract must provide that it will not be assigned without the client's consent.","Buyer and seller generally both file IRS Form 8594 when the assets of a trade or business change hands.","Goodwill averages 92% of the purchase price in the deals FP Transitions describes."]},"sources":[{"url":"https://www.successionresource.com/merger-or-sale-finding-the-right-path-to-your-exit/","checked":"2026-10-05","label":"Succession Resource Group: Merger or sale: finding the right path to your exit"},{"url":"https://www.law.cornell.edu/uscode/text/15/80b-5","checked":"2026-10-05","label":"Legal Information Institute, Cornell Law School: 15 U.S.C. 80b-5 (Investment Advisers Act Section 205), investment advisory contracts"},{"url":"https://www.irs.gov/instructions/i8594","checked":"2026-10-05","label":"Internal Revenue Service: Instructions for Form 8594, Asset Acquisition Statement"},{"url":"https://www.fptransitions.com/blog/components-of-a-deal","checked":"2026-10-05","label":"FP Transitions: Components of a deal"},{"url":"https://www.successionresource.com/wp-content/uploads/2024/09/Premium-Market-FA-CMA-Valuation-Report-SAMPLE-8-27-21.pdf","checked":"2026-10-05","label":"Succession Resource Group: Sample practice valuation report"},{"url":"https://www.law.cornell.edu/uscode/text/15/80b-2","checked":"2026-10-05","label":"Legal Information Institute, Cornell Law School: 15 U.S.C. 80b-2 (Investment Advisers Act Section 202), definitions"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.202(a)(1)-1","checked":"2026-10-05","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.202(a)(1)-1, certain transactions not deemed assignments"},{"url":"https://www.sec.gov/files/formadv-instructions.pdf","checked":"2026-10-05","label":"U.S. Securities and Exchange Commission: Form ADV: General Instructions (SEC 1707)"},{"url":"https://www.irs.gov/businesses/small-businesses-self-employed/sale-of-a-business","checked":"2026-10-05","label":"Internal Revenue Service: Sale of a business"},{"url":"https://www.law.cornell.edu/uscode/text/26/197","checked":"2026-10-05","label":"Legal Information Institute, Cornell Law School: 26 U.S.C. 197, amortization of goodwill and certain other intangibles"}],"related":[{"title":"Down payments, seller notes and earnouts: how the price gets paid","url":"https://advisoriq.com/succession/guides/how-the-price-gets-paid/"},{"title":"Minority stakes and outside capital","url":"https://advisoriq.com/succession/guides/minority-stakes/"},{"title":"How long a sale or succession takes","url":"https://advisoriq.com/succession/guides/how-long-a-sale-takes/"},{"title":"What buyers look at","url":"https://advisoriq.com/succession/guides/what-buyers-look-at/"},{"title":"Valuation estimator","url":"https://advisoriq.com/succession/valuation/"},{"title":"RIA deal tracker","url":"https://advisoriq.com/succession/deals/"}],"notes":["Educational, not legal, tax or investment advice.","Practice management content is not eligible for CFP Board CE. CFP Board plans to allow up to five hours of it per cycle once its Q4 2027 changes take effect."],"url":"https://advisoriq.com/succession/guides/asset-sale-vs-equity-sale/","citation":"AdvisorIQ, as of 2026-10-05. https://advisoriq.com/succession/guides/asset-sale-vs-equity-sale/","license":"https://advisoriq.com/license/","publisher":"AdvisorIQ, independent education for financial advisors","disclaimer":"Summaries of rules set by designation bodies and regulators, which have the final word."}