What is Your Succession Plan?
If you are like many of your fellow advisors, the idea of a succession plan is probably as far as you have gotten. For our more ambitious peers, there may even be a plan in place. In an article published by Think Advisor earlier this week (story link here), the news is a little less optimistic.
Citing a new study from Franklin Templeton, RIA firms are, in their words, “woefully underprepared” for planning a transfer of ownership of their firms. We should all find it a bit ironic that the business centered around shepherding clients into and through retirement would be so unprepared themselves.
We could devote volumes to the steps that experts suggest advisors take to prepare their firm for a potential acquisition, not to mention the potential paths that could take. The article also points out that in addition to be underprepared, advisors also underestimate the amount of time necessary to prepare for a transition.
For those looking to be successors, another finding of the survey should be of interest to you. Of the leadership of the 162 firms surveyed for Franklin Templeton’s survey, those looking to sell, merge or leave the business – half of those plan to do this within the next three years.
Another key point to keep in mind, the firms surveyed ranged in size from $100 million to near $5 billion in AUM. Does the conversation, or considerations change with firms smaller than $100 million?
With Dynamic Wealth, advisors have several choices if they choose to sell, merge or leave the business entirely. Within the community of advisors affiliated with Dynamic, advisors can meet, discuss and determine if there are synergies for their respective businesses. Any transition between existing Dynamic advisors makes the transition seamless for clients.
If you are among the 50% of advisors considering exiting the business in the next three years, contact the team at Dynamic for a confidential conversation about your options and readiness for a transition.
About Dynamic Wealth Advisors
Dynamic is recognized as a premier provider of essential resources to professional wealth management practices. Its turnkey practice platform includes asset management and enables wealth advisors to save money and focus on clients while positioning themselves for success and growth. With myVirtualPractice, a suite of wealth management practice solutions, Dynamic hands the professional wealth advisor the keys to a comprehensive custom-built virtual office and practice complete with staff, back/middle office, accounting/billing, compliance and even a Virtual Assistant. The wealth advisor need only add clients and a laptop, and they are up-and-running instantly. For many breakaways and independent wealth advisors, being part of a nationwide community of like-minded professionals is one of the most valuable components of their affiliation with Dynamic.