After decades of building a successful financial advisory firm, you now know that it’s time to retire and to think about your successor.


Selling your practice will, of course, be a difficult period with many obstacles to overcome. The most significant barriers are likely to be financial, which means you need to look at the monetary implications of whatever you decide on going forward.

Business valuation

The first thing to look at is how much your business is worth because you can’t create a succession plan without knowing that. Get expert help to set a fair market value for your company before moving forward.

Next, get professional help to learn how to mitigate estate tax losses and the other financial hurdles associated with succession, whether from your retirement or death. Dealing with qualified M&A professionals will ensure that your company’s value is as high as possible for the next leader, and we highly recommend spending the dollars to ensure your success.

If you run a family company, it might be worth transferring ownership to your children immediately, as this can lessen the tax hit you’ll take during the succession period. Undergoing this process will demand that you reorganize, you will again need professional assistance to complete this smoothly. Doing so will let you continue to control the day to day operations of the business while your children control the common shares before the eventual transition.

Your succession plan will be the framework for your future operations and will guide your future decisions while providing a great starting point for the next leader. No matter what you choose to do, we recommend you start a minimum of five years in advance to have your business in the best shape for succession. However, if you’re a little late to the game, it’s never too late to start getting your plans in order. 

Communication is key 

It’s not just the credentials of your successor that are essential to consider. You also need to make sure to choose a successor who is on the same page as you in regards to the future direction of the company. Doing so will make the transition period far less bumpy and improve the continuity of your business throughout the succession, decreasing the odds of clients and employees becoming unsettled and jumping ship. 

Make sure you communicate clearly with your successor during the entire process. The tiniest of misunderstandings could create all manner of disagreements, resentments, and arguments between your subordinates, but these will remain minimal when using clear communication.

It’s key to ensure your plan is as detailed and precise as possible. Be sure to include info on everything from how taxes will be handled, to the distribution of shares of ownership. Provide everything that your successor will possibly need and leave nothing open to interpretation.  

You’ve worked harder than most can imagine building your company, and now it’s time to think about the future. Most business owners will be anxious to leave a positive legacy that continues long after their departure. As such, it’s crucial to create a tight plan of succession that identifies and resolves all the potential monetary problems that may result.

Succession Link has built an online platform that makes it easy and convenient for you to find the perfect buyer for your financial practice or to locate a practice that is the right fit for an acquisition and the growth of your business. Click the link to find out how Succession Link can help you.

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