Succession: Who will inherit your book of business?

Advisory practices around the U.S. have been faced with a new priority focus: succession planning. With many of the youngest baby boomers approaching their 60s, it’s alarming to learn that only one-fourth of all advisors have a succession plan in place. Without a plan, many retiring advisors risk losing decades of efforts spent building their client relationships to another advisor who may not provide the level of service that their clients have come to expect.

Recently, an Upper-Midwestern advisor reached out to AdvisorLaw to help create a structured and self-funded succession plan, or what he likes to call a “personalized golden parachute.” AdvisorLaw was able to help our client leave his practice on his own terms, while simultaneously protecting the relationships that he had cultivated over the duration of his career.   

We took advantage of the current and favorable tax plan* to help our client walk away with several, high-six-figure payments, while also lining up escrowed cash payments with a 2020 disbursement, plus more future payments to come. Our client sold his book to a younger member of his team, who was able to split the costs among the other partners. To ensure a smooth and gradual transition, our client agreed to stay on as a consultant. 

Even if transitioning is still on the horizon, it’s not too soon to take advantage of AdvisorLaw’s recently-established Practice Purchase Network (PPN), which links sellers with dozens of qualified buyers in each geographical area to help maximize your return. Our AdvisorLaw professionals can put together a plan that fits your time horizon and protects the relationships that you’ve spent years building.  

*Consult with your own tax advisor, or let AdvisorLaw introduce you to one of our strategic partners.  

Blog Contact