EXIT PLANNING IN THE FINANCIAL SERVICES INDUSTRY

An advisor "exits" his or her business and career in one of three ways: by selling to a 3rd-party buyer in an external sale, by transitioning ownership to a trusted advisor or son/daughter through internal succession, or by simply letting revenue decline to non-existent growth through attrition. The resource libraries below contain tailored information for your chosen exit plan.


External Sale

Selling your business to a 3rd party is an option about 10% of the industry take. It's the advisors who think about the end game early and plan for a sale, however, who are able to realize the most value and move on to their next adventure with the most satisfaction.

The External Sale Resource Library of white papers, videos, and articles includes:

  • Avenues for selling;
  • Finding the best buyer to take care of your business and your clients when you are gone;
  • Non-advocacy support methods to benefit all parties;
  • Dealing with the emotional decision to sell;
  • And planning ahead for maximum value;

Internal Succession

About 7% of advisors plan ahead to transfer ownership internally, either to a son or daughter, or trusted advisor on staff. The key word here is plan. 

The Internal Succession Resource Library of white papers, videos, and articles includes:

  • Laying the groundwork through proper business and compensation structuring;
  • The proper method of transitioning ownership shares;
  • Deal structuring and financing options for your unique plan;
  • And the Lifestyle Succession Plan–a gradual, staged transition designed for maximum realized value. 

Attrition

Unfortunately, attrition accounts for about 80% of advisors' exit plans–whether by design or not. Too often it happens as an advisor gets older and is unable to work as much or as attentively as they once did. The business starts to shed clients and revenue, and value declines–sometimes sharply. Advisors who exit through attrition end up receiving only a fraction of what their business was once worth, and often the remaing clients are left abruptly without the financial advice they relied on.

This webcast goes in depth into the concept of attrition, including data showing that business without a clear exit plan inevitably decline as the owner ages.

Explore the libraries above for more valuable and secure alternatives to simply letting your business die through attrition.