Exit Planning 101:Financial Advisors Exclusive

Exit planning is completely owner-centric. YOU get to decide what you do with your advisory practice. And yes, you intend on implementing an exit strategy that reaps the rewards of sedulous years.

How much have you actually planned of an exit that seamlessly slides you down the rainbow to that pot of gold?Quite an on-the-fence question, isn’t it?

Take a look at the 101 of exit planning to nail that question!

Exit Planning – The Must Do’s

  1. Getan Advisor Team, perhaps the Advisor Successions!

Exit planning is owner-centric, all right, but it is complicated as well.

Intricate tasks of an exit, such as business valuation, succession planning, financing, tax administration and such like, demand distinctive expertise.With so many considerations and priorities hovering over your exit plan, it’s only wise to employ a well-seasoned advisor team.

Cutting to the chase, we at Advisor Successions, offer cardinal services to financial advisors during their time of maturity and transition. With us by your side, you sure have the best shots at exiting your practice on your desired terms and benefits!

  1. Determine your goals, both personal and professional.

Before you set your mind on working on an exit plan, be sure of yourself that you are retiring because you want to and not because you have to. Do not sell your practice just because the going has become tedious to solve persistent problems and frequent hitches.

Fix your practice. Remember, exit planning can also become another investment in your portfolio if done precisely.

  1. Quantify the strength of your practice.

How healthy is your practice? Is it thriving enough to be estimated to an up-market holding? What would be the evaluation of your practice with the current operations and assets?

Quantifying a preparatory value will provide clarity on the financial standing of your undertaking. When valuing your practice as a going concern, especially with the assistance of Advisor Successions, it becomes easier to identify accurate areas of enhancements that can be worked on. The main goal of exit planning is to maximize the return of transaction by increasing the value of your practice qualitatively.

  1. Set plans for your future needs.

As a financial advisor, you would have helped numerous business owners plan for the future funding requirements after the transitions. Have you pictured your retiral life yet? Well, your vision of the upcoming does structure your exit planning process.

The market value of your advisory does directly impact the standard of your living after the transition. For some advisors, who plan on further ventures, the more accurate you decide on your future plans the higher will be the yield.

Be it fully returning to family life or opening a long-desired restaurant, plan on a “target number”for which you plan your exit strategy.

Like mentioned before, YOU decide the worth of your practice.

  1. Analyse the short-comings and limitations.

With a preliminary calculated target, examine whether the quantified value of your business comes at par with the former. Consider both the current and “devised” levels of performance and productivity while looking through the competence.

If not, what are the limitations that stop your practice from reaching your expected target number? Are there any short-comings that can be rectified and modified for the better?

Advisor Successions can help you look through the setback and achieve the financial security you have fixed upon.

  1. Succession Planning

Succession planning builds up exit planning. It is the handing off the leadership control to the suitable successor, successor we can help you choose and crown.

Check out our insights on “Three Key Essentials of Succession Planning for Financial Advisors”.

Regardless of the exit strategy you choose, your practice will always be more appealing to high-end buyers, when there is a person taking care of your undertaking in your place. With a suitable successor in position, not only you can rest assured about your clients, but the buyers as well are saved from the responsibility of identifying and training the next-in-line.

The saved cost and efforts can work on the value of your practice.

  1. Sketch out for the successors as well! 

Your practice should be able to function with the same mettle and strength, even after your exit. You have given a price for your establishment, and you should take care that it continues to offer the claimed level of services.

You can’t just bid good-bye without looking back, can you?

Determining the after-exit performance and revenue will provide the necessary particularsto sketch out profitable objectives for a good beginning to your successors.

  1. Take care of your Taxes. 

You would want a clean exit with no legal issues and of course, with optimum taxes. The shorter the tax bill, the more win-win of a situation it is.

Advisor Successions can assist you in planning, framing and executing cogent tax minimization strategies that ensure a guaranteed and smooth exit.

After all, it’s those years of hard work to which we are doing justice!

Visit us at http://www.advisorsuccessions.com/ to learn more about Advisor Successions and our offerings! We can helpyou in selecting the right exit goals!

Scott Brittman