The Case Against Revenue Splits [Article]

Posted by FP Transitions on Oct 28, 2020 6:16:00 AM

With all of the modern tools for practice valuations and equity management solutions available, some financial advisors still choose to use revenue splits, or a revenue-sharing arrangement, as a makeshift succession plan. For a practice owner, this can be a poor and shortsighted business decision for several reasons, including:

  • Unfavorable tax implications.
  • Potential asset and client disputes.
  • Reduced business value.

Read more about revenue splits, how they can degrade the strength of your business, and which alternative strategies you should consider in our article, "The Case Against Revenue Splits." Click below to download the article for free.


Link to article: The Case Against Revenue Splits


Topics: Compensation, Succession Planning, Enterprise Strength, Cash Flow, Sustainability