For advisors who’ve spent years building a successful business, the value of that business may be their most important retirement assets. For clients who are relying on that firm to help them achieve their own financial goals, the succession plan must ensure they’ll continue to receive the high-quality care and service they’ve come to expect from their advisor.
With a growing number of financial professionals approaching retirement age and a potentially shrinking pool of qualified successors, advisors should take a more intentional approach to succession planning. Advisors who educate themselves about the overall process and begin exploring how to approach key steps such as finding a good match, creating a business valuation and structuring a deal will be in a better position to develop a plan that meets their personal needs and the needs of their clients.
If that research uncovers areas where advisors feel they need assistance—or if they want someone to help manage the entire process—they will have time to find resources that can help ensure a smooth and timely transition. “When you start early and take advantage of those who can provide you with the most help, then putting together a successful succession plan can be easier than you think,” says Todd Fulks.