The Lifestyle Succession Plan The Lifestyle Succession Plan

A "Lifestyle Succession Plan" is an internal transition that reflects the way most advisors work, live, and eventually retire. The idea is to set up a gradual transition from one generation of owners to the next. This plan reflects the values and needs of the founders while building an enduring business.

Internal Succession  |   Business Growth

What is a Lifestyle Succession Plan? What is a Lifestyle Succession Plan?

Many advisors begin the planning process too late, and their practice begins to lose value drastically as they begin to slow down. In this FP Webcast, President and Founder David Grau Sr., JD addresses how to execute a proper succession plan, from thinking realistically about your time to harnessing second-generation talent.

Internal Succession  |   Exit Planning

Succession Planning for Financial Advisors Book Succession Planning for Financial Advisors

Our book, Succession Planning for Financial Advisors, written by our President and Founder, David Grau Sr., goes indepth into internal succession planning.  It answers the question: How can a formal succession plan perpetuate business growth and income streams beyond an owner's lifetime

Internal Succession   |   Exit Planning

Succession and the Family Business - Client Success Story Succession & the Family Business - Client Success Story

Choosing a successor who is a part of your family doesn’t mean the process becomes 10 times easier. It requires the same careful planning to ensure ownership of the business ends up in the right hands. Tom and Paul Morrone have always been a close father / son unit, but that didn’t mean that Paul wouldautomatically take over one day. Tom instisted that Paul earn his ownership.

Internal Succession  |   Next Gen Talent 

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

Why Succession? Why Succession?
Inevitability. Responsibility. Commitment.

You owe it to your clients to build something concrete that will last through the time of their needs, not just the span of your career. This video shows you why you should create a strategy that will support a multi-generational business. It's the middle ground between selling your business, or letting it die.

Internal Succession  

The Two Biggest What Ifs of Succession Planning The Two Biggest "What If"s of Internal Succession Planning

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. There are two primary concerns that surface above all others. This article addresses these issues and how to handle them.

Internal Succession 

Financing to Accelerate Your Succession Plan

A buy-out loan can accelerate your exit plan, while a partial buy-in loan can facilitate your staged-succession. Both are designed specifically for financial advisor to reduce risk by moving the financing responsibility from seller to bank.

Internal Succession   |   Deal Structure & Documentation

Which Exit Path is Right for You? Which Exit Path is Right for You?

There are many exit options and a variety of ways to execute them. Your unique situation and goals will determine which one is right for you. This post describes exit options, the situations each is most suited for, and how to plan properly for your chosen strategy to maximize value when you are ready to exit.

External Sale   |   Internal Succession


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

Organization Growth - Client Success Story (Cornerstone Wealth) Organizational Growth - Client Success Story

Unexpected circumstances forced Floyd to quickly reduce his work hours at his firm, Cornerstone Wealth, from 45 to 20 hrs a week. Too young to retire, Floyd incorporated existing staff into the ownership structure to ensure his business not only survived, but thrived. In this client success story the team discusses the transition and their new ownership mentality.

Next Gen Talent  |  Entity & Business Structure  |  Business Growth

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

Building the Team - Roundtable Talk w/ Colleen Jordan Hallinan Roundtable Talk - Building the Team
with guest Colleen Jordan Hallinan, Qii Consulting

In this second Roundtable Talk with Colleen Jordan Hallinan of Qii Consulting, she shares ways to identify different personality types and work styles. Harnessing each individual's unique strengths creates a team that promotes the success of the business as a whole.

Internal Succession   |   Business Growth  |   Next Generation

Hoffman Lawrence Testimonial Client Success Story - Hoffman Financial Resources

Greg Hoffman found the best match for his business when he added Ross Lawrence to his team. Ross shared Greg’s commitment to the community and the people of Nevada, MO. Three years later they embarked on their succession planning journey with FP Transitions. Valuation in hand and succession options laid out, Ross and Greg chose the accelerated path with the help of bank financing.

Internal Succession  |   Business Growth |   Next Gen Talent

Legacy Financial Strategies - The Growth Machine Client Success Story - Legacy Financial Strategies

Michael Lutz understood that acquisition was a viable and smart path for growing his business. He wasn’t just looking to gobble up as many practices as he could, however. He also understood that if he chose his targets strategically, he could not only grow his business, but he could ensure its legacy by pairing acquisition with succession as a vehicle to recruit and retain Generation Two talent to his firm.

Internal Succession  |   Business Growth  |  Next Gen Talent

Asking Your Boss for Ownership Asking Your Boss for Ownership

Broaching the subject of ownership is a growing concern for young advisors, but it’s also an intimidating one. The ask is a big one, and it requires preparation. A young advisor should come to the conversation with clear achievements and goals that align with the business. This post explores the dilemma of asking for ownership and offers practical advice on how to accomplish the task and be more confident in the ask.

Next Gen Talent   |   Internal Succession

Course Corrections for Your Succession Plan Course Corrections for Your Succession Plan

Building a sustainable business and incorporating new talent into your ownership structure is a process that takes planning and monitoring. With so many moving parts including multiple parties and expectations, the process is bound to see some bumps. A course correction can come in the form of accelerating your plan, incorporating more owners, or, in some cases, falling back to Plan B. This post focuses on how to prepare for these situations and how to change course quickly, if needed, to preserve realized business value.

Internal Succession   |  External Sale   |   Next Gen

Book Review: Successful Hiring for Financial Planners BOOK REVIEW: Successful Hiring for Financial Planners by Caleb Brown, CFP

FPT Elite Client Consultant Kem Taylor shares her thoughts on Caleb Brown’s Book Successful Hiring for Financial Planners: The Human Capital Advantage. She highlights the most impactful sections and how advisor/owners can best utilize Caleb’s advice to grow their own staff, and with it, the business as a whole.

Next Gen   |  Business Growth   |   Internal Succession

Financing to Fuel Growth - Working Capital Financing to Fuel Growth, Acquisition, & Succession - Working Capital

A working capital loan can be used to boost business growth as you prepare your strategy whether it includes acquisition, internal succession, or otherwise. These loans are specifically designed with financial advisory businesses in mind with terms made it easier for long term growth.

Business Growth  |   Acquisition  |   Internal Succession

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 

Transforming Your Practice into a Business White Paper

Transforming Your Practice Into a Business

Building your business the right way is an important element to ensuring sustainability. Unfortunately, there are key elements many business owners forget to take into consideration – including compensation structure, equity pathways, cash flow, and entity set-up.

Business Growth  |   Entity & Business Structure 

Life After Advising - Roundtable Talk Roundtable Talk - Life After Advising
with guest Colleen Jordan Hallinan, Qii Consulting

In this first in a series of special Roundtable Talks, Colleen talks about her own journey to life after advising, and how finding the right people to take over the business made all the difference. 

Internal Succession   |   Business Growth  |   Next Generation

The Process - Roundtable Talk w/ Colleen Jordan Hallinan Roundtable Talk - The Process 
with guest Colleen Jordan Hallinan, Qii Consulting

In the last of our Roundtable Talks with Colleen, she shares the philosophies and process for her "after advising" enterprise: helping other advisors build stronger teams for greater success. She walks through some of the assessments and strategies that serve the core of her methodology.

Internal Succession   |   Business Growth 

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

Succession Management Program Phases

A breakdown of the three phases of our Succession Management Program: Design & Development; Documentation & Implementation; plus Support & Maintenance.

Internal Succession   |   Exit Planning

Using Bank Financing To Expand Your Options

Whether you're considering selling your business externally to the best qualified buyer, or internally to a team of proven successors, bank financing solutions can provide powerful tools to reshape or accelerate your plans.

External Sale  |   Internal Succession  |   Acquisition  |   Business Growth

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

Succession Planning for the Family Business
EMS Exclusive Resource

Family businesses have a unique set of challenges, the best way to turn these hurdles into advantages is through preparation, proper structures, and ultimately keeping the interests of the business and the clients top of mind when choosing the next leader of your business.

Internal Succession   |  Next Gen

Deal Structuring for The Lifestyle Succession Plan
EMS Exclusive Resource

When drawing up the plans and documents for your Lifestyle Succession Plan unique deal structuring applies. By its nature this type of succession plan requires you to consider increment amounts for ownership transfer, what each increment is worth, and a set time table for reassessing, adjusting, and continuing the plan.

Internal Succession   |   Deal Structure & Documentation

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

Self-Canceling Installment Notes
EMS Exclusive Resource

A Self-Canceling Installment Note has the advantages of both private annity and installment sales. They are  used to transfer ownership stake to your heirs at no gift, estate, or inheritance tax cost while retaining a stream of income for yourself over a set period of time. This short resource covers the advantages of a SCIN in certain situations and how it works once in place.

Deal Structure & Documentation   |   Internal Succession

Succession Management Program Overview

An overview of our Succession Management Program including: documentation and tools, our tranched approach to gradual ownership transfer, and the multi-generational ownership structure.

Internal Succession   |   Exit Planning   |   About FP Transitions