Brand Building, and Conversation Starters for Successors-Handout 1

Handout 1 - "Eyeing Ownership" article

Pdf Summary

This article provides guidance for the next generation of financial advisers who are considering buying a firm or becoming a successor to an existing adviser. It emphasizes the importance of open communication, trust and respect, and a shared succession timeline in successful succession planning. The article provides three questions for each criterion to help evaluate whether a current succession plan is likely to succeed or if it may be necessary to say "no" to the plan. <br /><br />In terms of open communication, the article suggests considering whether the adviser is comfortable discussing their succession plan, whether they are willing to discuss your career track leading to partnership and succession, and whether they are willing to share business information. Lack of open communication can be a red flag in a succession plan. <br /><br />Regarding trust and respect, the article recommends evaluating whether the adviser respects your education, experience, and personal values, whether they trust you to provide good service and bring in new clients, and whether they are open to changing business operations and delegating their work. Lack of mutual trust and respect can be detrimental to the success of a succession plan.<br /><br />Lastly, the article highlights the importance of a shared succession timeline. It suggests considering whether the adviser is looking forward to retirement and is personally and financially ready for it, and whether a recent business valuation has been completed. Having aligned expectations regarding the timeline is crucial for a successful succession plan.<br /><br />The article concludes by noting that sometimes saying "no" to a succession plan can lead to better opportunities for both parties if there is a lack of alignment or compatibility. It emphasizes the need for open discussions and potentially involving third-party experts to bridge any gaps in the succession planning process.

Keywords

financial advisers

successor

open communication

trust

respect

succession planning

evaluation

red flag

retirement

business valuation