Considering All Aspects of an Exit Strategy


Too often financial advisors make the same mistake as other small businesses in the United States: they pass along the baton too late, leaving their practice in a vulnerable state. Exit strategies and succession plans require foresight and careful planning. A successful exit strategy doesn’t simply plan for a business’s monetary future; it looks after its employees and clients. The legacy of an advisory firm depends on a well-organized succession plan.

Succession planning can sometimes be a difficult and emotional process. For those who have spent their lives building their practice, the idea of letting it go can seem unimaginable. However, this is no excuse for neglecting to prepare for the future. When 54% of advisors lack a concrete succession plan, this suggests a serious problem within the industry.

Advisory practices that fail to prepare for their ultimate transitions expose themselves to greater risk. They place the financial security of their immediate family in peril, leave important clients without service, and risk the loss of realized value. Imagine the kind of damage this can do to an advisor’s legacy.

Trust an essential component of any advisory practice. Many planners forge lasting friendships with their clients, ones that extend beyond the business. Preparing for the future isn’t just about looking out for yourself; it’s about making sure that your clients and employees are well taken care of.