Before we begin, it is important to clarify that beginning the exit/succession planning process does not necessarily mean you will be exiting your financial advisory business anytime soon. For most, it means beginning the process of designing a preferred future and planning for the eventual execution of their exit. 

In previous articles, we highlighted many of the primary benefits of starting the succession planning process sooner rather than later. Mitigating risk, maintaining control of the timeline, establishing an emergency continuity plan, maintaining a position of power in negotiations, etc. All of these and many others are often a core part of any discussion on the subject matter. 

In this edition, however, we will explore three ancillary benefits of starting the process of exit planning early: 

1. Valuation Enhancement (Via Growth): Establishing a partnership with a current or eventual purchaser, will likely allow you to grow your financial advisory business at an even faster pace than before. This can be especially beneficial since many buyers are now offering agreements that have a predetermined economic structure that provides for a higher buyout price if the practice grows in the coming years.  

To aid growth, many acquiring firms provide lead generation outlets that further empower sellers to grow their business. Additionally, if the acquiring firm also offers the type of support that provides scale and efficiency, there can be a force-multiplier that is created when you have not only more opportunity for growth, but also the time to capitalize on it. 

2. Personal Fulfillment: When we asked our network of Financial Advisors what they love most about their vocation, the most common response is that they love meeting with clients and giving them advice and guidance. Providing advice and guidance to clients is not only the optimum use of an advisor's time, but it also provides the highest level of personal fulfillment for most advisors. Through the support and efficiency provided by acquirers that we mentioned in our previous point, advisors who have established an exit plan will have more time to spend focusing on client relationships. 

The second most common response is that advisors love to mentor other financial professionals and want to multiply the impact of their legacy by discipling the next generation of advisors. Once a relationship has been established with the individual(s) who will be carrying on your legacy, it will not simply be a transactional relationship. Instead, it will be an opportunity to pass on the wisdom, values, and expertise that can only come from years of experience. The sooner the planning process begins, the more time you will have to instill your accumulated wealth of knowledge and wisdom to the next generation of financial stewards. 

3. Vocational Enjoyment: The golden years of one’s vocation should be the most enjoyable and the least stressful. Generally speaking, the sooner a task is begun, the less stressful it is to complete. Whether to allow for a sufficient amount of time to process through your decision, or simply to spread out the work over a longer period of time, starting early will almost certainly make the process easier. 

Additionally, similar to an established financial plan, the sooner your succession planning process is begun, the higher the likelihood of achieving your preferred future and your Best Vocational Life™. Career elongation, work-life balance, valuation enhancement, more time spent with clients, etc. What it means for an advisor to live their Best Vocational Life™ is unique to the individual and rarely achieved without proper planning. 

Whatever the next steps are for your journey, beginning the exit planning process sooner rather than later will almost certainly contribute to its effectiveness. Building a preferred future is a process and living your Best Vocational Life™ if often achieved over an uncertain period of time. Because of this, if the remarks above, or others mentioned in our previous articles, resonate with you, it may be time to begin designing your plan. 

If you would like to speak with one of our certified exit planning consultants about the best next steps in your journey, please email us at info@AdvisoryDNA.com or contact us through our website.