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Why Succession Advisory Isn’t Just an Exit Event

Many advisory sellers south of the border also want to get ahead of potential changes in the capital gains tax rate, which could later risk a higher tax bill in the future. On the insurance side, he said the majority of buyers are private equity players, and seller advisors are eager to pass their book on to like-minded fellow professionals who they know can provide their clients with the same quality of care.

“All of this indicates the importance of our mission: to help encourage better in-network transitions,” Chan says. “Our goal is not only to help enterprises avoid attrition, but also to ensure that we are not disruptive to consumers and uphold our obligations to them.”

Chan encourages all financial advisors and wealth professionals to start their succession planning early. He says those who found their own practices should understand what they need for their business, not only for themselves, but also for their loved ones, their employees, and their customers. This means thinking of succession not only as an exit event, but also as an opportunity to build a sustainable enterprise that can potentially generate lifetime income.

“It sounds cliché, but advisors need to start with their goals first,” he says, noting how many sellers enter into fixed negotiations over price and valuation, only to prevent negotiations on other issues. For. Before going to the table, consultants need to answer a few questions:

  • How will your customers be served?
  • What will happen to your staff?
  • How will the business be managed?
  • When do you want to physically exit the business?

“Once you define these goals, you will now be in a better position to work on your sales strategy, such as your non-negotiation, setting prices and clarifying your strengths and weaknesses,” says Chan. it is said.

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