TRANSITION TALK

It’s been a while since “keeping it in the family,” assumed your literal family. Yet, many advisors approach succession with pride when they have the opportunity to pass their advisory legacy to a son, daughter, niece, cousin, or other relative.

Choosing a successor who is a part of your blood family doesn’t mean the succession process becomes 10 times easier; it doesn’t mean you just hand over the keys one day with a, “See ya later, kid. Don’t burn the place down.” It requires the same careful planning and communication to ensure ownership of the business ends up in the right hands.

Tom and Paul Morrone of US Wealth Management in North Haven, Connecticut have always been a close father / son unit, but that didn’t automatically mean that Paul would step into his father’s shoes one day. Instead, he forged his own path before recognizing the business and the life his father had built was exactly what he was striving for. And still, ownership wasn’t just handed to him.

Tom insisted that Paul EARN ownership, and together they sought help for the succession process. It wasn’t a matter of trust. It was a matter of making sure they hadn’t missed any detail, and that they had the most beneficial path for both of them.

Below, watch the Morrones put their journey in their own words.

In the M&A space for the financial services industry, everyone wants to acquire. Few advisors, however, take the time to sit back and think about what they want from the acquisition: what kinds of clients and assets would complement the existing business, what new staff and advisors are required to run a larger book of business, and what will the new business look like post transition.

In our experience, the advisors who are most strategic are the most successful.

Michael Lutz of Legacy Financial Strategies in Overland Park, KS understood that acquisition was a viable and smart path for growing his business. He wasn’t just looking to gobble up as many practices as he could, however, because he also understood that if he chose his targets strategically, he could not only grow his business but he could ensure its legacy by using acquisition as a vehicle to recruit Generation Two talent to his firm.

Using FP Transitions Enterprise Consulting to develop and execute his internal succession plans, Michael offered equity, and with it a modicum of control, to recruit smaller advisors with existing books–and new advisors without–to Legacy Financial Strategies and created his “growth machine”. These mergers and additions increased the value of what they all now own and are committed to continue building.

With the right strategy, instead of just acquiring clients and assets, a “growth machine” is created, and the foundation for future growth is built with succession through acquisition.

Watch Michael’s story below.

FP Transitions client Greg Hoffman found the best match for his business, Hoffman Financial Resources, when he added Ross Lawrence to his team 5 years ago. Ross shared Greg’s commitment to the community and passion for helping the people of Nevada, MO make educated financial decisions.

Three years later they embarked on their succession planning journey with FP Transitions. Valuation in hand and succession options laid out, Ross and Greg chose the accelerated path with the help of bank financing.

Five years after joining the Hoffman Financial Reources team, Ross took over full ownership and Greg moved into his role as mentor, free to enjoy the life he’s earned after 30 years of financial advising.

Don’t just take our word for it. Watch Ross and Greg’s story below.