Advanced Considerations for Succession and Equity Advanced Considerations for Succession & Equity 

In this webcast, VP Eric Leeper, CFA explores the concept of equity and how it fits into your business plan. We'll show you how adding equity compensation to your structure benefits everyone, and supports an enterprise that will continue to work for you long after the traditional retirement date.

Compensation  |   Internal Succession  |  Business Growth


What are You Building? Ship vs. Liferaft - What Are You Building?

When it comes to understanding an "equity-centric" business model the structural details can be difficult to grasp. The parable of ship vs. liferaft will help to illustrate the problems many independent financial advisors face when trying to evolve their structures as they progress from a job to a practice, and ultimately, to a business.

Business Growth   |   Entity & Business Structure


Organizational Structure Organizational Structure

As businesses evolve they tend to move into a structure where value is attached to individual books rather than to the as a whole. To avoid this you need to set up a structure that is a business unit instead of just an accounting conduit. This webcast explains how improper structure can be dangerous for the ongoing growth of your business.

Business Growth  |   Compensation


Restructuring Ownership Level Compensation
Succession Management Exclusive Resource

Correctly structuring compensation at the ownership level is a critical element to building a business of enduring and transferable value. At this level, the question isn’t “how much” an owner should be paid, but “how” an owner should be paid. There should be two levels: 1) salary / wages for work performed; and 2) profits tied to one's investment in the business. Keeping these compensation levels separate is important for a stable business structure and fair value paid/earned when executing evental transition plans.

Internal Succession  |   Compensation 


Revenue Splits are Not a Succession Plan Revenue Splits : Not a Succession Plan

Even with all the modern tools of practice valuations and equity management solutions, some financial advisors are still choosing to use revenue splits as a compensation structure and succession plan. As an independent financial advisory owner, this is a poor and shortsighted business decision for several reasons.

Internal Succession   |   Entity & Business Structure   |   Compensation


Grants of Stock to Key Employees
EMS Exclusive Resource

It may be tempting to think that simply granting stock or ownership to a key employee would be an easy way to achieve succession. But the tax implications and potential issues this causes should be carefully considered.

Internal Succession  |   Compensation   |   Tax & Regulatory Issues


Setting Up the Proper Business Structure
EMS Exclusive Resource

Too many advisors focus on revenue strength as the sole measure of their success, but creating and building enterprise strength is just as important for growing value. Maximizing enterprise strength depends on the selection of the proper entity for your business, the proper organizational structure within that entity, and the proper compensation structure for the cash flow of that organization.

Business Growth   |   Entity & Business Structure  |   Compensation


Creating an Internal Ownership Track
EMS Exclusive Resource

Recruiting and developing a skilled team of advisors can be a daunting challenge for the owner of a financial advisory practice. Doing that, however, is only half the battle. Once you’ve chosen and trained your next generation how do you hold on to them? How do you keep them from opening up shop across the street? Create an ownership track and make the opportunity available to the best on your team.

Internal Succession  |   Compensation   |   Business Growth   |   Entity & Business Structure


Use & Application of Minority & Marketability Discounts
Succession Management Exclusive Resource

Minority and Marketability Discounts apply to shares of privately owned companies. Both are used in the purchase and transfer of shares that do not hold full ownership rights or value. These shares are awarded/sold in various situations and include those that represent a minority equity share that is not entitled to the same voting rights that majority ownership shares do, as well as shares that cannot be easily sold on the open market due to restrictions in place by the firm.

Internal Succession  |   Compensation  |   Deal Structure & Documentation