Succession Planning in Action

According to the 2018 study conducted by the FPA, 96% of teams acknowledge that without a succession plan, there are risks for the firm and their clients, yet almost 75% of firms have no formal plan developed. Why don’t more advisors have a plan? The study cites finding a successor as the major roadblock. This case study lays out in detail how an advisor and his team (names changed for the sake of confidentiality) were able to develop a transition strategy that allowed him time to train and groom his team into the successors he needed, share equity to retain the team until he was ready to retire, and maintain 100% control and profits until his exit. It may seem too good to be true, but this is a great example of the growing trend that advisors are making succession planning more about the continuation of their business than about them retiring.

 

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