Inaugural issue on succession planning cautions advisors to plan a legacy, not just an exit
The central tenet of the financial advice industry is helping clients plan for the future and protect their assets. Transformative technologies are deployed every day in pursuit of client goals, which are typically formalized in comprehensive plans developed by their financial advisors. However, when it comes to executing these forward-looking imperatives themselves, financial advisors are often less diligent.
While technologies can be relied upon to make the succession planning process more efficient and help automate many of the administrative tasks associated with it, initiating the process and executing the plan remains human-driven.
Succession planning is as essential as it is complex. However, kicking the can down the road benefits no one. Recognizing this, the specialists at Ascentix Partners, in collaboration with strategic public relations and marketing firm Haven Tower Group and others, have published a succession planning paper to help advisors clarify the steps they need to take to develop a plan. “Founders Should Plan A Legacy, Not Simply An Exit” is the first in a series of thought leadership pieces the Ascentix team will work on with industry stakeholders in its new Strategic Framework series.
Among the authors of the guide are industry stalwart and Ascentix Founder Larry Roth and Ascentix Co-Founder, Haven Tower CEO Joseph Kuo. Roth said in a press release announcing the paper’s publication, “A recent survey found that 75% of first-generation advisors do not have a formal leadership transition plan. This statistic illustrates that for most advisors, succession remains more abstract than actionable. At Ascentix Partners, we collaborated on this timely strategy article to encourage founders of advisory firms to start taking concrete steps that will help ensure a successful transition for all involved.”
Executives from The AmeriFlex Group, NewEdge Advisors and VestGen Wealth Partners, Davis Wright Tremaine and Seward & Kissel contributed personal experiences and insights to the guide, as well.
In addressing both the inner workings of creating and executing a plan and the emotional aspects that need to be addressed for owners to feel empowered to tackle the process, the discussion breaks the succession planning journey into five steps:
- Build a Vision Around the People Who Matter
- Assemble Your Team
- Choose a Deal Structure that Accomplishes Your Vision
- Determine What the Business Is Worth
- Execute the Deal
“Succession planning is often framed as the end but in reality, it’s just the beginning,” said Roth. “It’s an important topic that needs more discussion, which is why we chose it as our first long-form piece. With the incredible array of thought leaders in the Ascentix Partners Network, we plan on providing our unique perspectives on many of the wealth management industry’s most consequential challenges and opportunities.”
Access the entire guide at https://www.ascentix.com/advisor-succession.
