Haven’t quite managed to set up your advisory business succession plan? If so, you’re not alone.
While most wealth managers encourage their clients to engage in succession planning, surprisingly many still do not have one set up for themselves.
“It’s quite ironic to hear that certain independent advisors in the industry don’t have a continuity plan or an exit strategy for their businesses,” says Fred van Niekerk, Carrick Partners General Manager.
“That said, this aspect of long term planning often falls to the wayside due to putting their clients needs first and generally getting caught up in their daily operations.”
Take care of your clients and yourself
Having a continuity plan is critical to ensuring your clients will be taken care of in the long run.
“When wealth advisors do not have a formal succession plan, the value of their practice drops massively. Setting up a detailed strategy is a function of commitment to your portfolio of clientele,” adds Van Niekerk.
“At the end of the day, they trust their financial wellness with you. They need to know if something happens to you, that there is a detailed plan and process in place.”
He also emphasises that it’s often difficult to think objectively about your business when you’re at the centre of it.
“Planning for the eventuality that we’ll one day step down from an asset we’ve built from the ground up and devoted our lives to can be daunting,” he explains.
“But as much as we encourage our clients to be prepared for the long haul, we also have to ensure that we do the same for ourselves.”
Succession services at Carrick Partners
At Carrick Partners, we believe every advisory firm should be well-prepared for a range of succession scenarios, including death, disability or retirement.
“This is why we’re dedicated to assisting IFAs in setting up their continuity plans now to ensure a smooth exit later on down the line,” Van Niekerk explains.
“At the end of the day, having a well-thought-out plan is more than just a part of your business continuity efforts – it’s a growth strategy. It demonstrates client-centricity and that your firm is poised to provide uninterrupted service, no matter what.”
As a value add for our partners, the Carrick team offers a book buy-back option to allow for an efficient exit strategy.
“If you think your current advisory business succession plan is flawed or you’re just not sure where to start when it comes to future-proofing your business, don’t hesitate to contact our team,” he concludes.