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 for financial advisors more about the continuation of their business than about them retiring.

Copyright

This resource provided by Succession Resource Group, Inc. (“Provider”) is intended solely for informational purposes and general guidance on a variety of situations and may not be suitable for all advisors. This resource is provided “AS IS” and “AS AVAILABLE,” without warranty of any kind, express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, non-infringement, accuracy, completeness, or reliability, and should not be relied upon as legal, tax, financial, investment, or other professional advice. Provider makes no representation that the information is current, complete, or applicable to any particular situation.  

This resource cannot and does not account for the unique circumstances of each specific situation and must be reviewed by your own independent attorney, CPA, and other relevant professional advisors prior to beginning any due diligence process or taking any action in reliance on this resource.  

You expressly acknowledge and agree that no attorney-client relationship, fiduciary relationship, advisory relationship, or any other professional relationship of any kind is created, intended, or implied through the provision, access to, or use of this resource, and that Provider owes no duty of care or professional obligation to User. Succession Resource Group, Inc. and its affiliates, officers, directors, employees, agents, contractors, licensors, and representatives (collectively, “Provider Parties”) make no claims, promises, representations, or guarantees whatsoever, whether express or implied, regarding the accuracy, completeness, timeliness, reliability, suitability, adequacy, currentness, or fitness for any particular purpose of the information contained herein, and expressly disclaim all such warranties and representations to the maximum extent permitted by applicable law. Provider Parties specifically disclaim any warranty that the resource will meet User’s requirements, be uninterrupted, timely, secure, or error-free.  

  Nothing in this resource should be construed as a recommendation. By accessing, downloading, or utilizing these materials in any manner, you: (i) assume full responsibility for any loss, damage, liability, cost, or expense (including reasonable attorneys’ fees, paralegal fees, expert witness fees, court costs, and all other costs and expenses of litigation or dispute resolution) resulting from or in any way connected to the access to, use of, reliance upon, or inability to use, this resource; and (ii) release, waive, defend, indemnify and hold harmless Succession Resource Group, Inc., its affiliates, officers, directors, employees, authors, contributors, agents, licensees, successors, and assigns from any and all known or unknown claims, demands, damages, losses, liabilities, costs, or causes of action that may arise, at any time, out of or relating to your use of or reliance upon this resource. 

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