Succession planning is one area of wealth management that seems to be having trouble keeping up with the growth and evolution of the industry.
Research studies show that less than 30% of advisors have a succession plan. Many others who run thriving businesses have no strategy in place should a worst-case scenario leave them unable to meet their customers' needs or even make a living.
Similarly, many advisors are still looking at the capital they've accumulated in their firms and wondering how they can access it—whether to monetize their life's work or reinvest in business growth. .
While advisors have a lot to evaluate, including many partners and prospective outside equity investors, the good news is that there are firms that realize there are excellent partnership opportunities available domestically with these thriving practices.
In this episode, LPL Financial's Jeremy Holly, executive vice president of strategic business development, and Jared Fingeret, senior vice president, join Louis Diamond to discuss this critical topic.
Jeremy and Jared represent LPL's liquidity and continuity program, which provides end-to-end solutions for advisors looking to increase business value and monetize the legacy they have built.
So in this episode, they share perspectives for both business founders and future generations on what to consider as they grow their businesses and explore both the long and short term, including:
- The succession options that exist for advisers – and how new paths are emerging every day.
- The sunset deals offered by the wire-and how do they compare to an option from a firm like LPL or others.
- Monetization options—and how each path can affect the business owner and the next generation.
- The state of valuations – and what advisors need to know and the steps they should take to maximize the value of their business.
It's an important conversation for advisors and future generations in offices, independent firms, and everywhere in between.