TRANSITION TALK

LLC vs. Corporation. Which entity structure fits your goals?

Posted by FP Transitions on Feb 23, 2022 1:32:32 PM

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LLC vs. Corporation. Which entity structure fits your goals?

Building a solid foundation for your business begins with selecting a legal entity and tax structure that will be most beneficial for your circumstances. When choosing the right entity for your business, it is important to identify both your short- and long-term personal and professional goals and consider the pros and cons of each option. Ultimately, a properly structured entity is foundational for growth and prosperity because cash flow and value are directly linked through a practice’s organizational and compensation structure. 

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Topics: Succession Planning, Organizational Structure, Business Growth, Tip of the Week, State of the Market, Exit Planning, Next Generation, Sustainability, Wealth Management, Valuation & Appraisal, Business Operations

11 Places to Find Top Talent

Posted by Kem Taylor on Nov 29, 2021 7:57:00 AM

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Finding and recruiting talented professionals can be time consuming and intimidating. In this industry, online job boards like Indeed and Monster are not all that relevant. There are many other - better - places to locate up-and-coming talent. Whether you’re looking to recruit experienced advisory professionals, or fresh, new graduates, the following are 11 places for sourcing the best talent.

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Topics: Multi-Generational Ownership, Organizational Structure, Culture, Tip of the Week, Next Generation, Talent Recruitment, Sustainability, Building Your Team

Aligning Ownership Priorities for Success

Posted by Kem Taylor on Jan 28, 2021 2:17:34 PM

Succession Blog Aligning Ownership Priorities

In our more than twenty years’ experience helping businesses design and implement internal succession plans, we’ve seen that each generation—G1, G2, and G3—can, naturally, have their own distinct points of view and priorities. These differences are common and normal. By acknowledging these differences and communicating with each other, teams can adjust their expectations, align their priorities, and see their transition plans work out to the satisfaction of everybody.

But how do you align different priorities within your own ownership team? Below are three examples of how to facilitate this alignment. These examples are not of particular clients, but are taken from a conglomeration of advisor situations over the years.

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Topics: Succession Planning, Acquisition, Business Growth, Next Generation

Managing Roadblocks Along the Next-Gen Ownership Path

Posted by FP Transitions on Dec 8, 2020 7:24:01 AM

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When it comes to planning for the future, flexibility is important. Change is bound to happen–whether we see it coming or not. Planning for future growth and ownership of a business is no different. As a next-generation professional in this industry, being able to adjust your course while keeping your eye on the ball is imperative.

In the past, we’ve written about how founders and existing ownership teams can prepare for and adapt to changes that might come their way. While next-generation professionals may encounter similar roadblocks, you will face unique challenges of your own. In the current phase of your career–building experience, relationships, and leadership potential–the course correction discussion is less about planning for the future of a business as an owner, and more about carefully plotting the future of your career.

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Topics: Succession Planning, Multi-Generational Ownership, Next Generation

Identifying Key Successor Traits

Posted by FP Transitions on Oct 21, 2020 6:19:34 PM

Identifying Key Successor Traits

As an owner of a successful financial advisory business, you understand that the team you’ve built is vital to that success. Taking the next step and giving your top talent the opportunity to become owners can increase your growth and ensure that the business will continue to be successful–for generations to come.

Assembling this successor team and committing to a long-term partnership are important and weighty decisions. How will you know who will make a good partner? What traits and behaviors suggest that someone will make a successful owner? Much of that depends on your own values and priorities as the majority owner of your firm.

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Topics: Succession Planning, Next Generation, Sustainability, Building Your Team

Benefits of Synthetic Equity for Next-Generation Owners

Posted by Stuart Smith, JD on Sep 30, 2020 4:56:11 PM

Benefits of Synthetic Equity for Next-Generation Advisors

The term “synthetic equity” refers to a set of compensation tools that is commonly used to provide key employees some of the economic benefits of ownership without actual stock changing hands. While existing owners may benefit from synthetic equity by capitalizing on employee performance without relinquishing ownership, there are key benefits to next-generation advisors, too.

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Topics: Compensation, Succession Planning, Next Generation, Sustainability, Building Your Team

G2 Perspectives : Advice for Next-Generation Owners

Posted by FP Transitions on Feb 27, 2020 1:39:54 PM

As industry leaders in designing and facilitating internal succession plans for financial advisory firms, the leadership team at FP Transitions has its own talented, multigenerational ownership team in place. Our next-generation leaders have unique strengths and perspectives that keep our business constantly innovating and growing.

“If you could give one piece of advice to prospective G2 candidates what would it be?”

“Build up your skillset.”

Being an owner is about more than just advising clients and producing revenue. You need to look at–and contribute to–the broader picture. Know where your knowledge gaps are and spend time understanding these areas to expand your contributions to the business. Owners may focus their expertise in one or two areas, but to be successful they need to have a solid understanding in every aspect of running a business.

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Topics: Succession Planning, Multi-Generational Ownership, Next Generation

Financing for Successors

Posted by FP Transitions on Feb 21, 2020 10:32:39 AM

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Your principal advisor has invited you to become an owner. Congratulations! The majority of next-generation advisors are energized by the demand for and the opportunity of succession planning, but most founders are stalled leaving successors frustrated. Your challenge as a successor is helping to make the process work for everyone involved. One important way to do that is to recognize the principal owner’s impediments and to help him or her understand the process and how accessible it actually is.

The Primary Obstacle

Like you, most successors—hamstrung by student debt, mid-stride in buying homes, building families, and still growing in their careers and earnings potential—don’t have money to invest in a business. Eager founders (“G1s” or first-generation owners) may seek to remove these obstacles by gifting or granting ownership, but this can taint the relationship as G1 may ultimately feel short-changed by giving away part of the business they built with their own sweat and toil. Beginning a partnership where one side feels cheated isn’t an ideal way to launch a successful, satisfying transition. There has to be a better way. In fact, many founders and successors come together each year with plans that are truly win/win. So where does the money come from? In many cases, the answer is the business itself.

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Topics: Succession Planning, Multi-Generational Ownership, Next Generation, Sustainability, Enterprise

Cultivating Talent Through Culture (NEW Webcast)

Posted by FP Transitions on Jan 29, 2020 3:23:00 PM

Building a sustainable business requires reaching across the generation gap and tapping into the energy and talent of younger professionals.

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Topics: Business Growth, Culture, Next Generation, Talent Recruitment

Targeted Growth Solutions for Financial Advisors - FREE eBook Download

Posted by FP Transitions on Nov 13, 2019 1:17:01 PM

Today’s independent financial advisors face an endless array of opportunities (and challenges). The key is to identify impediments before they arise and to develop strategies for tackling the issues that present the greatest opportunities for improvement and growth.

There are four main challenges essential to the success of your business:

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Topics: Compensation, Succession Planning, Acquisition, Business Growth, M&A, Next Generation, Talent Recruitment, Enterprise