TRANSITION TALK

Preparing Yourself (and Your Boss) for Ownership

Posted by FP Transitions on Aug 13, 2019 11:22:15 AM

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As a next-generation advisor, pursuing ownership as part of your career path is an important decision. Business ownership requires a variety of skill sets and comes with both benefits and responsibilities that go beyond the role of advisor. Before you consider asking for ownership from the existing owners of your firm, you need to demonstrate that it is not only something you are capable of, but something you have earned.

Starting with these five steps as early as possible will help you build a strong case for ownership:

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

NEW Roundtable Talk - Time : An Essential Element of Succession Planning

Posted by FP Transitions on Aug 13, 2019 7:00:00 AM

In our newest Roundtable Talk, Elite Client Consultant Kem Taylor and President David Grau Sr., JD, discuss the importance of time when it comes to planning, executing, and evolving your succession plan. During the conversation they cover examples of how FP Transitions has helped business owners navigate any changes to their plan including accelerating the timeline, adjusting the next-generation ownership team, and falling back to “Plan B”–selling the business.

Watch a short clip below and click here to watch the full, unscripted discussion.

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Topics: Succession Planning, Next Generation, Talent Recruitment, Enterprise

NEW Webcast - Advanced Strategies for Growth & Profitability

Posted by FP Transitions on Jul 24, 2019 10:00:00 AM

The growth and profitability of your business are interconnected. Top-line revenue growth is essential, but it is no good without bottom-line profitability.

Balancing growth and profitability comes down to compensation structure and the equity pathways created for owners of the business. The profits generated through properly structured equity pathways are a catalyst for growth and the means to accomplish long-term strategic objectives including recruiting new talent, internal succession, and acquisition.

In our newest webcast, VP of Research and Analysis Eric Leeper, CFA®, discusses compensation solutions for businesses in varying stages of growth and how these strategies can boost both top-line growth and bottom-line profitability. 

View webcast clip below and click here to watch the full video.

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Topics: Compensation, Succession Planning, Equity Pathways, Enterprise

Accessing the Next Stages of Growth

Posted by Kem Taylor on Jul 17, 2019 11:02:25 AM

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Over the last ten years, increasing numbers of advisors have begun the process of creating sustainable businesses. Many advisors started out as a book or a practice—one-generational models. They took steps to create much more valuable, multi-generational businesses by focusing on enterprise strength and setting up or restructuring essential business structures.

The M&A marketplace is becoming increasingly competitive. Businesses need a strong value proposition to step away from the crowd. Owners who have taken steps to work on building their enterprises are in the best position to leverage their unique business aspects to access more growth opportunities and become successful acquirers or merger partners. 

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Topics: Succession Planning, Multi-Generational Ownership, Organizational Structure, Business Growth, M&A, Sustainability

NEW Roundtable Talk - The Next Generation Opportunity

Posted by FP Transitions on Jun 26, 2019 9:19:00 AM

The transfer of ownership to a team of next generation talent allows a business to leverage the individual strengths and fresh energy of a younger generation. As a new advisor, ownership provides stability, equity stake, and voice in the future of the business. As a founder, incorporating this team elevates your business, secures longevity, and sparks a new level of growth. The arrangement creates a win-win opportunity for both the founder and the next generation owners.

In our new Roundtable Talk, Elite Client Consultant, Kem Taylor, and our President and Founder, David Grau Sr., JD, discuss the process of going from next generation advisor to next generation owner and the common questions that come with it. They explore the benefits for both founder and next generation owners as well as the importance of communication between the generations for a successful integration.

Click here to watch the full, unscripted discussion.
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Topics: Succession Planning, Talent Recruitment, Equity Pathways, Enterprise

NEW Webcast - Issues Advisors Face

Posted by FP Transitions on Jun 17, 2019 9:12:00 AM

Independent financial advisors face an almost overwhelming set of challenges, but with challenges come opportunities. Many of these challenges fall into areas of:

  • Mergers & Acquisitions
  • Growth & Profitability
  • Talent Retention
  • Succession Planning

These opportunities and challenges are often interrelated. Tackling one challenge often helps solve another, thereby strengthening your business in other ways. A successful acquisition is supported by a strong enterprise that is capable of handling exponential growth, and building a strong enterprise requires the incorporation of next generation talent. Retaining and nurturing next generation talent is made possible with the proper compensation systems, and maintaining an effective compensation system demands business profitability. Bottom-line profitability increases when it is properly balanced with top-line growth. Finally, to bring it all together, growth is supported by building a strong, sustainable enterprise.

In this new webcast, President and Founder David Grau Sr., JD, discusses the top challenges and opportunities of the profession and how they can be addressed using an end-to-end, integrated strategy.

View webcast clip below and click here to watch the full video.

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Topics: Compensation, Succession Planning, M&A, Talent Recruitment, Equity Pathways, Enterprise

NEW Roundtable Talk - The Synergy of Multigenerational Ownership

Posted by FP Transitions on Apr 24, 2019 9:16:00 AM

In our new Roundtable Talk, Founder and President, David Grau Sr., JD, and Elite Client Consultant, Kem Taylor, CBEC®, explore internal succession and describe how both the succession process and business growth can benefit from multigenerational experiences and knowledge from all owners.

They also discuss other factors that benefit the succession planning process, including:

  • Acknowledging the "time" factor – having enough time to plan for, implement, and make adjustments to a gradual, internal transition of ownership
  • Helping next generation advisors understand the benefits and responsibilities of ownership 
  • Recognizing that each succession path is different 
  • Exploring "where you are" and "where you're going" before jumping into the process

Click here to watch the full, unscripted discussion.

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Topics: Succession Planning, Talent Recruitment, Equity Pathways, Enterprise

Rights and Obligations of Equity Ownership

Posted by Kem Taylor on Apr 18, 2019 9:21:21 AM

Rights and Obligations of Ownership

As more wealth management businesses look to internal succession, more new owners are being created. As a next generation advisor, you should consider whether ownership is the right path for you, and it is important to understand what ownership entails. Owners of a privately-held business, even with a minority position, enjoy several rights and privileges in exchange for their investment in the company, but they are also responsible for meeting certain obligations.

The following rights and responsibilities apply to all owners whether the business is a corporation governed by bylaws or a limited liability company with an operating agreement.*

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

The Sell and Stay® Strategy

Posted by Rachel Beckwith on Apr 2, 2019 1:50:50 PM

The Sell and Stay™ Strategy

Everyone has a unique vision of their future; we’re all trying to forge a path with our careers to that end goal where we can take a big breath and simply enjoy the life we’ve earned. While we might have an idea of the specific journey we will take, it’s important to remain open to alternate routes and unexpected shortcuts along the way. The hardest step on this journey for most is that which takes them out of the professional world they’ve been a part of for many years.

Unique goals and unique journeys require a creative strategy. For financial advisors, the Sell and Stay® path offers flexibility and freedom for an exit from the industry. There are advisors in the industry who have built a team of advisors with next generation owners and have built an internal transition into the sustainability of their business. The majority of our industry, however, is still made up of single-owner practices. Luckily, Sell and Stay® offers them the option of a similar exit path.

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Topics: Succession Planning, Selling Your Practice, Exit Planning, Sell and Stay™

Creating Collaborators Instead of Competitors

Posted by FP Transitions on Mar 18, 2019 4:38:46 PM

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A large percentage of advisory businesses use some form of revenue-sharing arrangements, or an eat-what-you-kill system that rewards sales and production tied to the top line, not the bottom line. This is true of small practices as well as larger businesses. “Fracture lines” are built into the practice model as individual books or practices are built in an environment that starts out collaboratively but most often ends up creating competitors. 

It’s important that independent advisors move away from obsolete practices and improper building tools held over from experiences in the wirehouse world. Creating a sustainable and valuable business should be the goal of every advisor. Building efficiently and effectively takes the proper tools, the proper structure, and the proper team.

Advisors need to embrace the most powerful and lucrative tool they have: equity. Equity is the value of the business separate and apart from the cash flow and compensation paid for work performed.

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Topics: Compensation, Succession Planning, Revenue Sharing, Building Your Team

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