Synthetic Equity Webinar Synthetic Equity [Webinar]

Synthetic equity can enhance your ability to recruit, reward, and retain talented advisors and support staff, and offers key economic benefits of ownership, without actual stock changing hands. It is an innovative set of tools that should be considered by every independent financial professional–especially in challenging times. Originally aired April 28, 2020.

Internal Succession  |  Next-Gen Talent  |  Business Growth


G2 Journey - Roundtable TalkThe G2 Journey : From Team Member to Leader to Owner [Roundtable Talk]

The financial obligation of purchasing ownership in the business can enhance an already strong sense of duty to the organization and can pull the bigger picture into focus. As an owner you're no longer responsible for just the projects on your own desk, but for the performance and success of the business as a whole.

Next-Gen Talent  |  Internal Succession  |  Compensation  |  Business Growth


Sell and Stay Webinar Sell and Stay®: A Versatile Deal Structure [Webinar]

In today’s marketplace, many sellers are looking for a flexible offramp that allows them to realize value while continuing to work and earn income. Buyers are concerned about effectively servicing acquired clients and finding talent. The Sell and Stay® model is a powerful strategy to align the interests of both buyers and sellers. Originally aired May 5, 2020.

Deal Structure  |  External Exit  |  Acquisition 


Synthetic Equity White Paper Synthetic Equity : A Unique Approach to Compensation [White Paper]

The success of any small business depends on its ability to recruit, reward, and retain talented advisors and support staff. Equity is often used in addition to–or in conjunction with–compensation to achieve these goals. Synthetic equity is a tool set that can provide ownership-level benefits without buying or selling actual stock in an advisory business.

Compensation  |  Internal Succession 


Advice for Next-Gen Owners G2 Perspectives: Advice for Next-Generation Owners

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. In this video, our next-gen ownership team shares their advice for new and prospective next-generation owners.

Next Gen Talent  |  Internal Succession


Financing for Successors Financing for Successors

One of the key hurdles to completing internal succession is financing the transition. As a next-gen advisor seeking ownership, understand how the alignment of compensation creates profit will allow you to leverage the equity to finance your buy-in. Educate yourself on the process to facilitate your founder's progress and to be a part of creating a financial structure that supports the vision and future of the business.

Next Gen Talent   |   Internal Succession


CultivatingTalentWC_ResoruceThumb Cultivating Culture Through Talent

Leverage what makes your practice unique to attract and retain next-generation talent. In a competitive marketplace, developing and executing a clear recruitment and retention strategy to build the right team may be the most important investment you make to grow your business. Through the 3Rs–recruit, reward, and retain–you can successfully build a next-gen team that will help transform your business into a sustainable enterprise.  

Next Gen  |  Internal Succession


Structuring Ownership CompensationStructuring Ownership Compensation

The separation between wages for work, performance incentives, and return on investment needs to be clear. The delineation is critical more a number of important reasons, including the ability to predict expenses, increase value, and create investability. Equity is a powerful compensation tool to attract, retain, and reward talent. It must be used with measured precision to achieve appropriate long-term results.

Compensation    |   Business Growth  |   Valuation & Benchmarking


Targeted Growth Solutions eBookTargeted Growth Solutions for Financial Advisors

Today’s independent financial advisors face a daunting array of opportunities (and challenges). The key to harnessing ownership opportunities is to identify impediments before they arise and develop strategies for tackling the issues that present the greatest opportunities for improvement and growth. Discover actionable guidance for seizing ownership opportunities and facing challenges head on.

Business Growth   |   Internal Succession   |   Compensation  |  Next Gen  |  Acquisition


Growth and Profitability Webcast Advanced Strategies for Growth & Profitability

Balancing growth and profitability comes down to compensation structure and the equity pathways created. 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.

Compensation  |  Business Growth  |  Next Gen Talent


Destabilizing Value w/ Revenue Sharing Destabilizing Value With Revenue Sharing

A large percentage of advisory practices have built in “fracture lines” by using a revenue-sharing arrangement to compensate multiple professionals in one office. In the independent sector your focus should be on creating a team of advisors that work together—compensated for contributing to an supporting a single enterprise—rather than individuals building their own books and leaving the practice with the clients and cash flow they’ve generated.

Entity & Business Structure   |   Compensation  |   Next Gen


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  


Entrepreneurs Need Intrapreneurs READ NOW Entrepreneurs Need Intrapreneurs

When it comes to securing your legacy and choosing your successor, instead of looking for an entrepreneur like yourself, shift your search to intrapreneurs. Intrapreneurs are more likely to wear one or two specialized hats. They can see the "big picture" and demonstrate an ownership mentality. They are focused on driving improvement within a company rather than starting up a new one.

Internal Succession   |  Business Growth    |   Next Gen


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 


Succession RTT Thumb - David + Kem Roundtable Talk - The Next Generation Opportunity

FPT experts discuss the process of going from next-gen advisor to next-gen owner. They discuss the importance of tapping into individual talents to create a stronger business, as well as the importance of clear communication between generations for a successful integration.

Next Generation Talent   |   Internal Succession  |  Business Growth 


Plotting Your Exit - Read Now Plotting Your Exit

When should you start developing your internal or external exit plan? The short answer is: as soon as you can. Projecting your “workweek trajectory” and exit timeline can help you to determine your planning targets and allow you to make more informed business decisions like investing in various growth strategies, evaluating staff levels, and determining compensation.

Internal Succession   |   External Sale


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 


Elevating a LegacyElevating a Legacy : A G2 Success Story

Revisiting a thriving successor team six years later to check in on their accomplishments and the future growth they’ve set their sights on. Empowering a successor team that YOU trust fuels their drive to accomplish incredible growth, elevate the business, and carry a legacy beyond the foreseeable future.

Business Growth   |   Internal Succession  |  Next Gen 

 


WATCH NOW - Synergy of Multigenerational Ownership - Roundtable Talk Roundtable Talk - Synergy of Multigenerational Ownership

This Roundtable Talk explores the internal succession and describes how both the succession process and business growth can benefit from multigenerational experiences and knowledge from all owners. Additionally, we look at other factors that help the succession planning process, including helping next generation advisors understand the benefits and responsibilities of ownership.

Business Growth    |   Next Gen 


Next-Gen ImpactNext-Gen Impact

Next-generation advisors are in a unique position to leverage their generational experiences and opportunities that influence business value to carve out their ideal career path. The demand for next-generation talent continues to increase as longevity, continuity, and staying competitive become top priorities for many financial advisor-owners. 

Business Growth   |   Internal Succession  |  Next Gen 


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


Issues Advisors Face Issues Advisors Face

Independent financial advisors face an almost overwhelming set of challenges, but with challenges come opportunities. These opportunities and challenges are often interconnected and fall into areas of mergers & acquisitions, growth & profitability, talent retention, and succession planning.

Next Gen Talent   |   Entity & Business Structure  |  Compensation 


Workweek Trajectory Worksheet - DOWNLOAD Determining Your Workweek Trajectory Worksheet

This worksheet will help you clarify and plot your own workweek trajectory and exit timeline. Forecasting your workweek trajectory and exit timeline can help you to determine your planning targets and allow you to make more informed business decisions like investing in various growth strategies, evaluating staff levels, and determining compensation.

Internal Succession    |   External Sale


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


Rights and Obligations of Equity OwnershipRights & Obligations of Equity Ownership

Ownership allows you the freedom to create your own work environment, shape client experiences, and enjoy financial rewards. As with any small business, however, there are ownership rights and obligations that should be considered and understood. This post explores important aspects of being part of an ownership team. It explores key areas such as decision making, transparency, finances, and investment in the context of both benefit and responsibility. 

Next Gen    |   Internal Succession


Preparing Yourself for Ownership Preparing Yourself (and Your Boss) for Ownership

As a next-generation advisor, before you ask 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. There are four critical steps to take in your early career to jumpstart your path to ownership.

Internal Succession   |   Next Gen  |   Compensation

 


Time : An Essential Element of Internal Succession - Roundtable TalkRoundtable Talk - Time : An Essential Element of Internal Succession

Elite Client Consultant Kem Taylor, CBEC, and President David Grau Sr., JD, discuss the many paths succession plans can take as well as offer several examples of how business owners are navigating their plan adjustments including accelerating the plan, adjusting the next-generation ownership team, and falling back to “Plan B”–selling the business externally.

Internal Succession   |   Next Gen 


Watch Now : Cultural Fit & the Ownership Mentality : G2 Perspectives Roundtable Talk - Cultural Fit and the Ownership Mentality : G2 Perspectives

The next-generation ownership of FP Transitions discuss their own experiences in taking the mantle to shape the team and future of the business. They explore hiring for cultural fit and potential value, the definition of “ownership mentality,” and how they might identify potential G3 leaders in the generation beyond their own.

Internal Succession   |   Business Growth  |   Next Generation


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


Harnessing the Power of Mergers Harnessing the Power of Mergers

Advisors commonly think of a merger as the statutory combination of two entities, but it’s better to think of the merger process as the combination of two or more advisors’ strengths, client bases, and cash flow streams. The transactions boost productivity and create tax benefits while reducing or eliminating weaknesses and inefficiencies. A merger can facilitate many growth and business goals including: integrating internal succession, facilitating acquisition, and expanding reach.

Business Growth   |   Acquisition   |   Next Gen


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 


Enterprise Consulting Overview

Enterprise Consulting is an end-to-end business growth solution. It is designed to adapt to your needs, your timeframe, and your goals to provide an effective and cost-efficient solution. It is a unique approach designed for a unique profession.

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


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