Succession planning is a hot topic these days, as well it should be. We are experiencing a significant graying of the profession and many advisers are considering exit plans. But succession or exit planning should be a long-term process, not an “OMG, I’d better figure this out” moment.
Every financial planning practice has a life cycle; for many advisers it looks roughly like this: survival mode, “Midas” growth phase, first stumble, success, second stumble, sustainability/decline. Each of these phases is an opportunity for the business owner to evaluate the current situation and develop a strategy for moving forward. It may seem like an obvious process, but all too often it’s simply not addressed. Advisers bring their own styles and personalities to their business lives and those characteristics often inform how they run their businesses.
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Successful Transitions: Getting It Right
By Matt Lynch, Managing Partner, Strategy & Resources LLC.
Journal of Financial Planning, December 2015