Financial Advisors have made a profession of helping others with planning for the future. However, many financial advisors do not take the time to make their own plans for the future. A recent survey revealed that many advisors did not have a succession plan for their practice should something happen to them. Others surveyed said that they had a partial plan in place should something happen. However, there might be a shift in this trend. Many firm owners now understand that a succession plan is necessary to ensure that their clientele will be taken care of and to secure the economic future of their firm. A succession plan is more than just a competitive advantage because it also provides peace of mind for the owner, who might care about his or her clients.
When a person creates a succession plan, they might want to consider these two things:
- If a person were to die suddenly, what would that person want to happen to the firm?
- If a person were to retire,what would that person want to happen to the firm?
In answering these questions, a person might want to consider selling the business to the top employees of the firm.
See Karen DeMasters, Succession Survival Guide, Financial Advisor, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
