If you are preparing to become the successor of an RIA firm, you may have a lot of questions and concerns about how to negotiate the best deal and what lending options are available to help you finance the succession.
To help you answer these questions, Alicia Chandler, President and Susie McEuen, Strategic Markets Vice President of Oak Street Funding sat down with FP Transitions’ Director of Valuations, Aaron Wells, and CFO, Eric Leeper, to share their insights and tips on what successors need to know.
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Topics:
Continuity Planning,
Succession Planning,
Deal Structure,
Continuity,
Sustainability
What we wish everyone knew about succession planning.
We sat down with lenders, analysts and valuation experts to talk about what really happens in succession planning. Four seasoned professionals weighed in, and the answers are remarkably candid.
Many advisors forget to view their financial advisory business as their largest personal asset. Focusing on clients is imperative, but caring for your firm is also an exceptionally important part of this. Leveraging experts like FP Transitions to develop a robust and tailored succession plan means hiring a team of professionals who know every. single. thing. about succession planning for financial advisors.
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Topics:
Succession Planning,
Acquisition,
Financing,
Transition Plan,
Valuation & Appraisal,
Transactions
It’s the dream scenario for a lot of financial professionals: business ownership. It sounds great, right? It means you get to make important business decisions, make more money, be the boss, and enjoy the freedoms that come with it.
It’s all true, but there is so much more to being a business owner. Your investments of time, energy, and money can come back to you in tremendous profits and satisfaction. There are also obligations that go along with the perks. Riding the highs and lows, responsibility for your team, and getting involved in every aspect of the business.
Building a business from scratch takes patience, resilience, and risks. Earning a place in the ownership circle of an existing business takes focus, commitment, and ingenuity. But the real question is: Are you ready to be an owner?
FPT RESOURCE: Rights and Obligations of Equity Ownership
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Topics:
Multi-Generational Ownership,
Next Generation,
Leadership,
Business Operations
Often used interchangeably, the terms Continuity Plan and Succession Plan refer to very different business planning elements. Continuity plays an essential role in defining what happens upon a “triggering event”– sudden absence, disability, death or otherwise, while succession refers to an intentional plan that brings multiple generations of owners into the business, typically over 10-15 years, to carry it forward for decades to come. We refer to this goal as sustainability.
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Topics:
Continuity Planning,
Succession Planning,
Continuity,
Sustainability
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For our clients, the courses of action may differ, but growth is the number one priority. The goal could be to grow and then sell it to a third party for maximum value. Alternatively, the aim could be to create a sustainable enterprise capable of supporting a gradual transfer of ownership, leadership, and responsibility to an internal successor.
Many advisors arrive on our doorstep using terms like “silo” and “ensemble” to describe to us what they believe they have built. However, these terms merely describe the organizational structure, which is just one facet of the strength of an independent advisory enterprise. These terms are not sufficient for diagnosing ALL structural elements needed to support a sustainable, profitable, valuable enterprise in this highly-regulated and sometimes complex industry.
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Topics:
Business Growth,
Sustainability,
Enterprise
End the Cycle: How to Make Marketing a Constant Business Generator
Marketing powers growth, which is why it’s a priority when we’re in need of more business. But over time, with great marketing, business starts booming. That’s when many advisory firms begin to pivot to client service and satisfaction, letting the lead generation campaigns run their course. When the funnel starts to dry up, we dig back into early-stage marketing on social media, email campaigns, more lunch meetings – only to hit pause once a few more clients trickle in. Enter the vicious cycle of the start-and-stop campaigns. We get it, you cannot do it all.
But what if I told you there was a way? Would you be interested? We’re breaking down the challenges and matching you with immediate solutions. Let’s go!
CHALLENGE #1: In the Moment Decisions
Something triggers a renewed marketing focus. It could be anything, but more commonly this can come from an increase in capacity (new team members, better technology, clients on target and requiring less focus) or it could be due to a need for more revenue (profit margins are down, loss of a long-time client, more clients entering retirement). Whatever the source, you start looking for ways to boost revenue.
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Topics:
Education,
Business Growth,
Business Operations,
marketing
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Great opportunity comes often with great risk. But just as importantly, and far more prevalently, everyday challenges wear on us, too. How many times have you had the same conversation with a client about opening that 529? Or upping that 401k contribution? They want to do it – so they say – but they keep showing up for meetings without having done it.
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Topics:
Succession Planning,
Business Value,
Transition Plan,
Continuity,
Sustainability,
Leadership,
Valuation & Appraisal,
KPI,
marketing,
valuation
Whether you’re looking for seasoned talent or up-and-coming professionals to fill out your team, a winning recruitment strategy is built with intention. It's not just about the role you need to fill, but also about identifying the type of person who best aligns with your business’s culture and future growth goals.
What is the reason for adding this person to the team? Is it simply a matter of capacity? Or are there some other opportunities you can seize in the process? Recruiting the right person can also address your goals to:
- Expand your service offerings
- Diversify your client base
- Create improved operational efficiencies
- Secure continuity of client service
- Prepare for succession of business ownership
Understanding which of these align with your existing business plan will help you to tailor role descriptions and find the very best person. Setting the table for success requires vocalizing the right words, expectations and opportunities to your new hire at the outset. Additionally, this focus will help you to communicate what you can offer to attract your ideal candidate.
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Topics:
Compensation,
Business Growth,
Culture,
Talent Recruitment,
Building Your Team,
Equity Pathways
In this M&A Playbook episode James Fisher, JD, VP of M&A and Principal at FP Transitions, shares insight on one of the biggest threats to your transaction–deal fatigue.
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Topics:
Acquisition,
Deal Structure,
Buying & Selling,
Mergers
In this episode of the FP Transitions M&A Playbook, James Fisher, JD, VP of M&A, shares a timely update of M&A activity and trends.
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Topics:
Acquisition,
Buying & Selling,
Mergers
