Often used interchangeably, the terms Continuity Plan and Succession Plan refer to very different business planning elements. Continuity plays an essential role in defining what happens upon a “triggering event”– sudden absence, disability, death or otherwise, while succession refers to an intentional plan that brings multiple generations of owners into the business, typically over 10-15 years, to carry it forward for decades to come. We refer to this goal as sustainability.
Topics: Continuity Planning, Succession Planning, Continuity, Sustainability
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For our clients, the courses of action may differ, but growth is the number one priority. The goal could be to grow and then sell it to a third party for maximum value. Alternatively, the aim could be to create a sustainable enterprise capable of supporting a gradual transfer of ownership, leadership, and responsibility to an internal successor.
Many advisors arrive on our doorstep using terms like “silo” and “ensemble” to describe to us what they believe they have built. However, these terms merely describe the organizational structure, which is just one facet of the strength of an independent advisory enterprise. These terms are not sufficient for diagnosing ALL structural elements needed to support a sustainable, profitable, valuable enterprise in this highly-regulated and sometimes complex industry.
Topics: Business Growth, Sustainability, Enterprise
End the Cycle: How to Make Marketing a Constant Business Generator
Marketing powers growth, which is why it’s a priority when we’re in need of more business. But over time, with great marketing, business starts booming. That’s when many advisory firms begin to pivot to client service and satisfaction, letting the lead generation campaigns run their course. When the funnel starts to dry up, we dig back into early-stage marketing on social media, email campaigns, more lunch meetings – only to hit pause once a few more clients trickle in. Enter the vicious cycle of the start-and-stop campaigns. We get it, you cannot do it all.
But what if I told you there was a way? Would you be interested? We’re breaking down the challenges and matching you with immediate solutions. Let’s go!
CHALLENGE #1: In the Moment Decisions
Something triggers a renewed marketing focus. It could be anything, but more commonly this can come from an increase in capacity (new team members, better technology, clients on target and requiring less focus) or it could be due to a need for more revenue (profit margins are down, loss of a long-time client, more clients entering retirement). Whatever the source, you start looking for ways to boost revenue.
Topics: Education, Business Growth, Business Operations, marketing
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Great opportunity comes often with great risk. But just as importantly, and far more prevalently, everyday challenges wear on us, too. How many times have you had the same conversation with a client about opening that 529? Or upping that 401k contribution? They want to do it – so they say – but they keep showing up for meetings without having done it.
Topics: Succession Planning, Business Value, Transition Plan, Continuity, Sustainability, Leadership, Valuation & Appraisal, KPI, marketing, valuation
Whether you’re looking for seasoned talent or up-and-coming professionals to fill out your team, a winning recruitment strategy is built with intention. It's not just about the role you need to fill, but also about identifying the type of person who best aligns with your business’s culture and future growth goals.
What is the reason for adding this person to the team? Is it simply a matter of capacity? Or are there some other opportunities you can seize in the process? Recruiting the right person can also address your goals to:
- Expand your service offerings
- Diversify your client base
- Create improved operational efficiencies
- Secure continuity of client service
- Prepare for succession of business ownership
Understanding which of these align with your existing business plan will help you to tailor role descriptions and find the very best person. Setting the table for success requires vocalizing the right words, expectations and opportunities to your new hire at the outset. Additionally, this focus will help you to communicate what you can offer to attract your ideal candidate.
Topics: Compensation, Business Growth, Culture, Talent Recruitment, Building Your Team, Equity Pathways
In this M&A Playbook episode James Fisher, JD, VP of M&A and Principal at FP Transitions, shares insight on one of the biggest threats to your transaction–deal fatigue.
Topics: Acquisition, Deal Structure, Buying & Selling, Mergers
In this episode of the FP Transitions M&A Playbook, James Fisher, JD, VP of M&A, shares a timely update of M&A activity and trends.
Topics: Acquisition, Buying & Selling, Mergers
I have one of the best jobs in the financial services industry. Every day, I get to talk to independent advisors, young and old, and together we plan for the future. The journey of building a business that can outlive its founder is exciting, rewarding and, maybe, a little perilous – certainly, there are plenty of unknowns and first time experiences. In our experience at FP Transitions, there are two primary concerns that surface above all others.
Topics: Succession Planning
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The vast majority of today’s independent advisors only consider the option of selling to a third-party when it is time to retire or significantly throttle back as a last resort. Many advisors prefer a path with internal successors that allows them to exit gradually while building a strong, sustainable business. Many of these same advisors, however, come to realize too late that that process takes a fair amount of time, skillful execution, and next generation talent. As a result, a third choice emerges: that of attrition, which for most advisors is less of a choice and more of a default–keep working, enjoy the income, and let the practice slowly wind down if no better option emerges.
Topics: Selling Your Practice
You invest a substantial amount of energy into running, growing, and evolving your business. Knowing when, where, and how to best direct your efforts could mean the difference in thousands, or even millions, of dollars long-term. Having spent two decades accruing and organizing essential datapoints on more than 15,000 businesses, we’ve got a tight grasp on what matters most at each step of the way.
Depending upon your goals, certain areas will move the needle faster than others. Rather than guess at the best use of your limited resources, our team has compiled a list of places where your ownership and C-Suite team can start assessing opportunities for increased firm value.
Topics: Selling Your Practice, Business Growth, M&A, Revenue Strength, Business Value, Revenue Sharing, Multiples, Benchmarking, Valuation & Appraisal, KPI