Selling Your Practice? First, Check Your Successor’s Goals
A firm owner needs to ensure the care and nurturing of clients and staff goes on without him.
By Patrick Farrell
Investacorp President & CEO
Toward the end of a career of successfully helping clients lead better financial lives, exiting advisors naturally want to know that whoever buys their practice will uphold their legacy of service. There is an undeniable pride in making sure clients experience the same level of care and attention once a successor takes over the business.
The catch is that exiting advisors, if they are not careful, are limited in how much control they can exert once a sale is final. Successor advisors are bound to want to change something about your practice. It’s just a matter of what and when. Indeed, they could alter technology, clientele, service model, leadership style, staffing, branding or office locations.
These shifts can be smooth if they are well thought out and implemented methodically. Or there could be problems if they happen too abruptly. Common issues include workflow bottlenecks or miscommunication with staff and clients, which may hinder the firm’s profits and damage the exiting advisor’s legacy.
Here are some suggestions to minimize the chances of troublesome disruptions during and after a transition.
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