A Graceful Exit Begins With A Well-Constructed Plan

A Graceful Exit Begins With A Well-Constructed Plan

by Jeff Nash, Founder & CEO, BridgeMark Strategies

Published September 30 on Wealth Solutions Report

Industry Veterans From Sowell, Cambridge And AmeriFlex Explain Timelines And Elements Of Succession Plans, And How Advisors Late To The Timeline Catch Up

For business owners in any industry, a successful exit is an integral part of the business lifecycle, as it is the vehicle by which these entrepreneurs monetize their years of hard work and ensure their business – and its clients – are in good hands. In wealth management, demographic trends have put this strategic planning element in the spotlight. However, upwards of 25% of financial advisors – some studies put the number higher – do not have a succession plan in place.

Our industry is looking at an overall decrease in total advisors. It’s forecasted that tens of thousands of advisors are retiring each year with not nearly as many new advisors entering the industry. As a result, consolidation is feeding a flurry of private-equity-backed firms and record-setting prices buyers are willing to pay. In addition, greater efficiencies driven by technology and other tools and resources will, I believe, eventually allow advisors to service twice as many clients. Succession planning – or the lack thereof among financial advisors – is fueling these two significant trends...…Read More