Succession planning

As the owner of a successful financial advisory practice, one of the most daunting challenges you face may be succession planning for your business.

Two of the biggest objectives are securing business continuity for your clients and securing the value you have built up in your business. Here are some points to consider:

Start planning early

Advisers tell us it is never too early to start planning for succession. You may need at least five years to complete a full transition successfully. That planning could begin with a deep consideration of your own objectives, your current financial situation and taking into account the following key questions:

  • How much is your retirement lifestyle dependent upon the sale of the practice?
  • Are you mentally and emotionally ready to step aside?
  • What is the most advantageous way to receive the payout? Lump sum or single payment?
  • Do you plan to sell your business to a senior or junior partner?
  • Is a family member interested in taking over?
  • Will you use the services of an outside, unbiased platform?

Develop a process

One option is to develop a succession management process for your firm to follow and tying this succession plan to the overall strategy of your business.

Identify and nurture internal talent

Perhaps one of the most important questions is whether you want to transition to an internal candidate, or sell your practice on the open market. If you are interested in internal succession, it may be wise to start identifying suitable candidates among your team at an early stage.

Our relationship with advisers in practice

For an example of how our relationship with Financial Advisers works in practice, allowing you to focus on the relationship with your client, please do not hesitate to read Simon Yates of Enlightened Money’s interview in Citywire.

We would like the opportunity to meet you

If you are concerned about the issue of succession, or perhaps conversely would benefit from ideas for growing your business, we would be happy to discuss this with you.

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Paul Bolt, our wine expert, was recently inducted as a Chevalier de Champagne and actively trades on Livex.
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