As Associate Director of Strategic Partnerships for Pinnacle Advisor Solutions I am responsible for our business continuity solution PRISM – Pinnacle’s Revocable Institutional Succession Model. Over the course of the last year I have talked with literally hundreds of advisors regarding their succession planning options. I have heard pretty much every excuse not to have a plan in place. Below are my favorites:
- I’m 43 years old I don’t need a succession plan. Succession planning is just for older advisors who want to sell their firms. If anything we are in acquisition mode not succession planning mode. Besides which, I am in perfect health.
- I know an advisor/friend across town and he is my succession plan. I have an informal handshake agreement with Joe Smith across town. I have known him for years and I trust him. If I die he will take over my practice and vice versa. I’m not concerned that neither of us have the capacity to actually absorb one another’s firm.
- I have a woman that works for me who can take over. I have a junior advisor that works for me that can run the show if I am not around. I don’t care that she can’t afford to compensate me or my estate for the value of the firm. I’m also not concerned that nowhere does it say in writing that she will be my successor.
- My college age daughter is my succession plan. I want my firm to be a family business. Sure she is not ready to run the firm and probably won’t be for another five or ten years but I want this to be a family business.
- I’m going to hire an advisor to be my successor I just haven’t found the perfect fit yet. The truth is succession planning is very difficult and for that reason most advisors procrastinate and therefore don’t have a viable contingent succession plan in place.
I realize it is a daunting task and quite honestly, no one really wants to think about their own mortality. However, having a plan in place that will take care of your clients and your family is an important part of your business. Pinnacle has created simple yet effective solutions to this complex problem:
PRISM – Our simple, risk-free continuity planning solution is designed to protect your clients and your family in the event of death or disability.
PRISMPlus – Our succession planning solution which builds on PRISM by also preparing for a voluntary exit.
I will be hosting an introductory webinar on the first and third Thursday of each month to explain the benefits of the program and why we are leading the movement to bring viable contingency planning to advisors. To register for our webinar on February 4, click < here >. To register for our webinar on February 18, please click < here >.