TRANSITION TALK

There is a lot to consider when crafting an effective continuity plan: partner, terms, triggering events, and clients expectations to name a few. This infographic below breaks down the most important elements of continuity planning to help tackling the process a little simpler.

Where do you want to be in 5 years, 10 years, maybe 15? Many advisors begin the planning process too late. In our lastest FP Webcast, President and Founder, David Grau Sr., talks about how to execute a proper succession plan. From thinking realistically about your time to harnessing second-generation talent, David walks you through the benefits and logistics of starting early.

The single, biggest threat to the continuity of an independent financial services or advisory practice is the lack of formal plan to protect the clients, cash flow, and value in the event of the sudden death or disability of the primary advisor. And the biggest challenge to obtaining protection is finding a great continuity partner.

Here at FP Transitions, we're always striving to help you build a better business for a better life–a better life for you and a better life for your clients. We developed these webcasts with you in mind. We know your days are packed, and we respect that your time is valuable.

This webcast features Vice President Eric Leeper, CFA as he leads you on a deep dive into the succession planning process by exploring cash flow modeling and equity compensation as a way to stimulate exponential growth within your company.

The decision to sell a financial services practice is a difficult one for any advisor to make. After a lifetime of work to build your business, how do you just turn it over to someone else? Will they work as hard as you have? Will they care for your clients as much as you do?

When selling your practice, you get just one chance to do it right.

We recently spoke with one of our clients about their journey to selling their business. Their story provides unique insights into the process, and illustrates the opportunities–and the mistakes–that many first time sellers make.

It’s not just a financial advisor mentality; it’s a human mentality. We KNOW life is finite, but we find it difficult to think about our mortality, and along with that comes the avoidance of planning for it. But, as an advisor, isn’t that one of your big pitches? Invest now, plan wisely, and grow wealth for the future. Provide for your heirs when you’re gone. You encourage every one of your clients to not only plan for their future, but to prepare for what comes after. That’s good advice.

Few financial planners, however, take their own advice.

There is much to consider when determining and receiving the true value of your financial services practice, things like assets under management, client demographics, revenue mix, likely employee and client retention, and, of course, cash flow. Check out Wealth Management's recent article, "Boosting Curb Appeal" by Anne Field, for advisor experiences when it comes to looking at all the factors of practice value, including 25-year industry veteran Elizabeth Brickman who valued and sold her business with the help of FP Transitions, but not before realizing the importance of preparation and targeted growth prior to selling.

Understanding all the little things that boost the value of your business will not only benefit you should you decide to sell, but will help you identify areas on which to concentrate on to promote growth.

Read the full article here.