Succession Planning - Merit Financial Advisors

Have you thought about the future of your advisory business?

It’s possible the answer is yes, and you have a clear plan for the road ahead. But if not, you’re not alone. The thought of selling the practice you or your partners built from the ground up can be daunting. However, certain factors, both external and internal, may make a merger, acquisition, or some combination of the two attractive.

According to the 2019 U.S. Financial Advisor Satisfaction Study by J.D. Power, the average age of financial advisors is about 55, and approximately one-fifth of advisors are 65 or older.* This means many practices will face a crossroads sooner than later.

*J.D. Power, July 2019 - https://www.jdpower.com/business/press-releases/2019-us-financial-advisor-satisfaction-study

FINANCES

You’ve built your practice on helping others manage their finances. But what does your business model look like? This is a good jumping off point. Ask yourself:

Is cash flow king?
Can you kick the habit?
Is there an alternative?

EMOTIONS

Emotions are a large part of deciding the future of your practice. After all, this is a business you’ve nurtured and handled with the utmost care. It’s important to identify your feelings as you consider your options. You may wonder:

What is my why?
What will I do?
Who will I be?

RELATIONSHIPS

This may seem obvious, but relationships are truly the backbone of your business. In fact, client satisfaction is probably your top priority, one that guides your firm’s culture and values. As you weigh your options, think about:

Who will be affected?
What do I want for my team?
What do I want to provide?

Want to learn more about selling your advisory practice? Click the button below to download our whitepaper.

Download our Whitepaper

PODCASTS

In these podcasts you will learn and understand the "requirements and red flags" when evaluating acquisition opportunities as well as the emotional and psychological elements of deal-making. You will hear how to build enterprise value and how to help advisors answer the number one question: 'What are you trying to build for the future?' To hear our leadership team speak on the importance of mergers and acquisitions and how to better prepare for a transition. Click the podcasts below!