Create a Simple Succession Plan
Every business and client base is unique. But, there are some common core elements for advisors to consider if they want to begin developing a succession plan or internal ownership track for the next generation. We have seen and developed a wide variety of plans for our clients and know it’s easy to get bogged down in the details or let these types of plans become overly complex and “die on the vine.” Our recommendation? Start planning sooner rather than later, and keep it simple.
Succession Planning Help Is On The Way
Change is hard. No one likes it. So it is no surprise that so many advisers avoid the subject of succession planning. Both a Cerulli Associates study and polling by the Financial Services Institute found that almost 60% of advisers have not yet identified a successor. Yet every year more advisers get closer to their inevitable transition. An estimated $2.3 trillion in assets is controlled by advisers over the age of 60.
Top 10 Tips: Succession Planning for Insurance Agencies
After witnessing hundreds of agency leadership transitions, whether it’s planned, forced, tragic, or amicable, change in leadership is always difficult. You may think you have all your ducks in a row, then one will fly off on you. Here’s some help finding what could work for you:
Sutley Wertzer: Looking Back One Year After Transition
Sutley Wertzer, Inc. Looks Back One Year After Acquisition Seller & Buyer Success Story Based on SRG’s most current data, demand for advisory practices remains strong with more than 50 buyers for every seller. But, the highest values and best successors take time and effort to find. SRG’s seller clients receive on average 3 to 4 offers and 33% higher sale prices than self-negotiated deals. SRG’s Seller Advocacy program is the best solution for advisors looking to exit the business, helping you develop a group of elite buyers to select from and get the best deal for your practice. This client success story is a great example of how one advisor was able to find a great buyer and great deal, while still creating a win win for everyone involved. DOWNLOAD NOW
Due Diligence Checklist
Download Your Checklist! Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download Stay on track. Whether you decide to buy or sell a financial advisory practice, it can be complicated and there will be many moving pieces to keep track of and negotiate. Succession Resource Group’s Due Diligence Checklist provides a comprehensive list of some of the most commonly asked for items to review before buying/selling a financial services practice. As you negotiate a deal, due diligence periods typically range between one week up to four weeks, so it is important to make sure you have a reliable list of items to review before consummating a purchase. Using this checklist as a guide with your attorney/accountant, you can be sure you review at least the basic components of the practice and know who you are considering doing a deal with before final negotiations and signing a purchase/sale/merger agreement.
Effective Strategies to Exit Your Business
https://youtu.be/8tFf9s7y54c How do you plan on exiting your business? Succession Planning can mean different things for you and for your peers. While it can be done internally within the team or sold externally to an industry peer, it requires a different timeline, planning, and strategy. Whether you plan to slow down and retire now or in the next 5-10 years, this session will discuss: The Levered Buy-In and Shared Growth Model (SRG’s award-winning solution), the two most effective strategies for internal succession The most popular exit strategy for external sale The four most common succession pitfalls every advisor should avoid Join us to learn more and start your succession plan now!
Succession: The One Thing
https://youtu.be/-Y-u7jbhQuY Practice valuations are at records levels driven by strong market conditions and significant buyer demand. It should be assumed that when an advisor wants to retire, they will get a great value, great payment terms, and have numerous successors to choose from. Yet most advisors get a fraction of what they are worth, and never fully evaluate their potential pool of successors. This 20-minute session will tackle THE ONE THING your broker-dealer and custodian(s) is doing that is inadvertently killing your value and how to avoid the issue! Fill out the form to register watch this webinar on demand.
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. DOWNLOAD NOW
Secrets of Succession
https://youtu.be/LnYkDV7o6Ls As an advisor, you have likely built a business of substantial value. Unlike other businesses, your most valuable asset is the relationship you’ve built with your clients, which commands time and commitment to ensure a successful transition near the end of your career. Understanding your value, key drivers and detractors, and how to develop a strategy to receive the value of your practice is becoming increasingly important and challenging. Succession Resource Group provides the: Most up-to-date market data on the value of your business, How financial services business can and should be valued, Succession Planning Mistakes Current deal terms, Recommendations for improving your value, 3 tips when selling, and 2 pitfalls every advisor should avoid
3 Mistakes to Avoid With Your Succession Plan
https://youtu.be/JpkbUFUPiN4 Succession Planning Mistakes and How to Counter Them Developing a succession plan to transfer your business will ensure your business to continue to thrive when you are ready to slow down. You will be able to retain and attract the best team, sustain growth while you work less, and realize some or all of the value over an extended period of time. To do this, it helps to know what to expect, the common succession planning mistakes and how to counter them. Succession plans are as unique as the business and owners they are developed for. Knowing this, long time succession advisor to advisors, David Grau Jr. provides you with the 3 most common succession planning mistakes made by financial advisors and the remedy for each. Join the webinar to learn the most frequently asked questions and our expert’s answers on how to do succession planning for financial advisors right, when to start, and how to make sure you get the most for your practice when you are ready to retire. About David Grau, Jr., MBA:David Grau Jr. is the founder and CEO of Succession Resource Group. He is currently one of the leading speakers in the financial services industry on mergers and acquisitions of independently owned financial services firms, as well as valuation strategies and practice continuity issues, with over 200 presentations to his credit. In the past five years, he has spoken at a variety of the industry’s leading firms, including LPL Financial Services, Wells Fargo, Ameriprise Financial, MetLife, ING, AIG, Fidelity, Jackson National, Prudential, FSI and at many FPA chapters around the country. As an expert on advisor valuation, acquisition and succession planning, David has assisted hundreds of advisors and other professionals buy, merge, sell, and craft their transition plan for the sale of their business over the last decade.