Welcome to "Designing an Effective Succession Plan" with Lori Power. Lori, a Certified Exit Planning Advisor (CEPA) and president of MP Benefits, brings her expertise in helping financial advisors navigate their retirement transitions.
In this video series, Lori covers all the essential elements of succession planning: from the benefits and key considerations to the systems and technology that ensure a smooth transition. You'll learn how to structure deals, identify successors, and manage the handover process—giving you peace of mind and confidence as you step away from your practice.
Complete the video series quiz to earn 1 CE credit! #
To qualify, you must watch all the videos and score at least 80% on the final quiz. Once you pass, you’ll receive an Advocis x Equisoft certificate via email as proof of your accomplishment.
Why is succession planning crucial for financial advisory firms? #
Succession planning should not be viewed as an afterthought or a final step in a business's lifecycle. Instead, it is an integral component of the overall business strategy, interconnected with various aspects of the organization's operations. Effective succession planning should be proactive and woven into the fabric of the business, contributing to its long-term success and sustainability.
How to prepare for successful succession planning and the role of a certified exit planning advisor (CEPA) #
Succession planning requires collaboration with various expert service providers, such as financial advisors, lawyers, and valuation specialists. These professionals play a critical role in developing effective exit strategies and business valuations. Their expertise ensures that the succession plan is comprehensive and aligns with the overall goals of the business, emphasizing the importance of teamwork in the planning process.Learn how a skilled CEPA facilitates this teamwork and supports a successful transition for your business.
What are some key considerations and what is the ideal timeline for successful succession planning? #
Think of successful succession planning as planting a tree—it requires time and care to flourish. Since your business represents a significant financial investment, it’s essential to start planning your succession early, ideally at least 10 years in advance. This approach allows for growth and development, ensuring a smooth transition when the time comes.
#
Key benefits of succession planning for financial advisors #
Advisors need succession planning to avoid the tragedy of dedicating decades to their clients and the industry, only to leave without a legacy. Key benefits of succession planning include ensuring continuity of service, retaining clients, developing talent, accurately valuing the business, preparing for retirement, and identifying strategic gaps early on. By addressing these areas proactively, advisors can create a successful transition that honors their hard work and dedication.
#
Common challenges that financial advisors face in succession planning #
Planning fatigue poses a significant challenge for financial advisors during succession planning. The J-curve concept illustrates the potential initial dip in performance or morale as changes are implemented, followed by a recovery and eventual growth. Understanding this process is crucial for advisors, as it emphasizes the importance of patience and commitment throughout the succession process. By recognizing the J-curve, advisors can better navigate the complexities of succession planning and maintain focus on long-term goals.Learn more about the challenges associated with the J curve, and other challenges that financial advisors face in succession planning.
#
How important are systems, processes, and technology for advisors preparing for succession? #
For your business to thrive, prioritizing effective systems and processes is essential. Without them from the very first sale, you may find yourself duplicating efforts and creating inefficiencies. Well-designed systems enhance everything from compliance to delivering an exceptional customer experience.Discover how optimizing your systems and processes can significantly increase the value of your practice.
#
Key considerations for implementing a successful succession plan #
