Succession Planning for Financial Advisors

It is never too early to start thinking about how to plan for the future of your advisory business. In fact, you should start planning now if you haven’t already. It’s not only the future of your clients that is at stake; it’s yours. You’ve put a lot of effort into building your business and you’ve invested your life into it. Just as you encourage your clients to plan for the future, you must also be prepared.

As you’re thinking about your succession plan, ask yourself:

  • What kind of lifestyle do you see for yourself in retirement?
  • Do you plan on selling your business? Have you identified a potential leader?
  • How will you ensure the best interests of your clients?

As a financial advisor, you have two choices when it comes to the future of your business. You can choose to sell your practice or you can choose to cultivate an internal candidate within your team who may be able to take over your business one day. Many financial advisors choose the latter option – and developing new leaderships for your firm takes time. Whatever your succession plan may be, get started now for the best outcome.

PAG helps you plan for the future.

Whether you want to cultivate the next generation of independent advisor to eventually be the successor of your business or if you’d like to sell your business, Private Advisor Group can help.

PAG Internship Program

Private Advisor Group, in collaboration with LPL Financial, has designed a custom Learning Plan and certification program for college students who are intelligent business or finance majors. This certification program is an online course that educates the student on some of the basic workflows found in our independent advisors’ offices. Once they complete the certification, we market them to the advisors in our network as qualified candidates for summer or winter break internships. This allows our advisors to gain access to smart, enthusiastic and eager students that might be a fit for their firm in the future.

Succession Planning for your Financial Firm

Private Advisor Group recognizes that many of the independent advisors in our network do not have an exit strategy for their business. To this end, we help in a few ways. We provide our advisors with access to business valuation software through one of our Strategic Partners. This software will lead them through a series of online questions and then provide them with a detailed report outlining what the value of their practice is today and what they need to do in order to drive the value of their practice up for tomorrow. The output delivers actionable items and levers the advisor may do today to assist in getting the most out of their business when it is time to sell.

In addition, with over 600 advisors in our network, we are in the know when any of our advisors are seeking to buy or sell their practice and can act as matchmaker to ensure the best possible fit for both the advisor and the clients.

Advisor Protection Program

For advisors in our network that do not have any formal plan currently in place, we designed the Advisor Protection Program. This program is a stop gap measure for an advisor should he or she suddenly die. It helps plan for the unexpected and ensure your clients and family are taken care of should something happen to you.

WHAT IS THE ADVISOR PROTECTION PROGRAM?Private Advisor Group will offer any advisor in our network the opportunity to enter into a buy-sell agreement where Private Advisor Group will pay your beneficiary double your trailing 12 month advisory revenue should you die.
HOW DOES THE PROGRAM WORK?An advisor will sign a buy-sell agreement with Private Advisor Group. Should the advisor die, Private Advisor Group will pay the designated beneficiary—over the course of four years—the specified amount (double your trailing 12 month advisory revenue).
WHAT WILL HAPPEN TO MY CLIENTS?With over 600 advisors in our network nationwide, Private Advisor Group will seek to match your clients with an advisor in close proximity, whose business model, investment philosophy, and specialized services are most similar to yours and best suited to their needs.
WHAT IF MY CLIENTS GO ELSEWHERE?Private Advisor Groups assumes all the risk and will pay your beneficiary regardless of whether your clients and assets leave the firm.

Note: Buy-sell agreement includes all advisory and brokerage assets. Payout is based on double advisory business only.

If you don’t have a succession plan in place or any of these programs is intriguing to you, please call us now for more information.