Topic: Succession Planning

Three Major RIA Growth Mistakes to Avoid

For most advisors and RIAs who own their firms, growth is the ultimate goal, whether through organic strategies, M&A activity, or some combination thereof – and for good reason. Without growth, firms run the risk of losing clients they can’t replace, missing the chance to capitalize on massive opportunities like the great wealth transfer, and falling too far behind competitors to catch up. But with a few adjustments to right-size common mistakes, advisors can capture growth opportunities and set their firms up for future success, whether that means selling the business or passing it down to the next generation within the firm.

Succession Role Transition Planner Tool

Succession planning is a gradual and complex process that involves the smooth transition of trust from one generation of owners to the next. It encompasses various crucial elements such as timeline considerations, mentoring and training, evaluating risk tolerance, managing finances and cash flow, determining valuation, reviewing contracts, and much more. In order to simplify this process, we have created this e-book that breaks down your succession plan roles into 7 categories. It is also an example of what our expert SRG consultants use to initiate conversations and facilitate planning. To ensure that your succession planning is intentional, organized, and strategic, make use of our comprehensive succession planning checklist. It will help you develop a well-thought-out and documented transition plan. Don’t miss out on this valuable resource! DOWNLOAD NOW

The True Power of Succession Planning — A Retirement Readiness Guide

Introduction Building a successful independent financial advisory firm that can support the firm’s key stakeholders is a significant accomplishment. But building a successful firm is the first milestone, not the end of the journey. Once the firm is established and stabilized, the next milestone should be to create a sustainable enterprise. This goes beyond figuring out the service and pricing model, attracting and retaining loyal clients, solid branding, and a trustworthy reputation.

Success Through Succession Series

This four-part series provides a deep dive into why advisors should engage in succession planning proactively, when to start, the most effective strategies being used today, and much more. Part 1: Preparing Your Practice, Preparing Your Team Part 2: The Mechanics of Succession Planning Part 3: How to Effectively Share Equity Part 4: How to Make Succession More About Growing, Than Going Learn more about what we cover in each part in the descriptions below. Part 1: Preparing Your Practice, Preparing Your Team When operating an advisory business, it is essential to start with the end in mind. What do you want to build? How big do you want to get? When does the Gen 1 founder(s) want to be able to retire? And, when you leave the business, who takes over (and how do they afford it)? These are the questions the industry’s most successful advisors have an answer for and which we’ll unpack. This first session focuses on what advisors need to do with their internal operations and service model to position themselves for a successful exit. We will talk about who you would share equity with and when, how valuation should be approached, career track best practices, how to get Gen 2 and Gen 3 team members ready, and critical financial considerations that impact succession (compensation and profitability). Part 2: The Mechanics of Succession Planning Selling the business is one of the most important decisions you’ll make as a founder. For some, they’ll hit the “easy button” and sell the entire business to a peer and then retire after a short transition period; others will simply retire through attrition, dying at their desk. Internal succession with your team is that happy middle ground. In this second session, we’ll dive deep into the taxation of internal deals, stock vs. asset sales, seller vs. bank financing, gifting and grants, how to handle sweat equity, minority discounts, and family business transfer considerations. Part 3: How to Effectively Share Equity Selling your business, regardless of how long it takes or who you sell to, is something you get one shot at doing right and is the final step to ensuring your clients are taken care of when you finally exit. This third installment goes deep on the four most common and effective internal equity-sharing alternatives being used today. We will look at how buy-ins can be structured, evaluate the pros and cons of each, and explore real-life case studies to understand how they ultimately chose the right solution for their situation. Part 4: How to Make Succession More About Growing, Than Going This final installment focuses on the human element of the transition. We will focus on how to effectively map out the role transition between Gen 1 and Gen 2 (and/or Gen 3), how and when to communicate the plan to staff and clients, and what the seller’s ongoing role could look like. We will also review how to get Gen 2 and Gen 3 ready to take over, and best practices to position your successors to not just operate the business, but how they can grow it even after you’re retired.

SRG Off Script: The Importance of Succession Planning for Advisors

In this SRG Off Script Live, David Grau Jr. dives into the crucial topic of succession planning, answering your questions about designing a plan regardless of how far away retirement may seem. Submit your question(s) at registration or live during the webinar! SRG Off Script is a monthly webinar series hosted by President David Grau Jr. David along with other industry experts provide insight and address questions related to all stages of managing a financial practice. Have a request for future SRG Off Script session topics? Let us know at registration or email marketing@successionresourcegroup.com. Watch Recording Resources [Infographic]The Exit Planning Menu → [Blog Post]Powerful Succession Planning Tools You Need → [Blog Post]Succession Planning 101: Steps and Processes → [Podcast]The Importance of Succession Planning for Advisors → Learn more about SRG’s Exit Services. Schedule your free consultation below! Presenters David Grau Jr., MBA Founder & President Succession Resource Group