Succession planning update – Don’t keep kicking the can down the road

There was an interesting Professional Adviser article last month discussing the potential negative outcomes of delaying succession plans.

Research carried out by ValidPath found that nearly a quarter of those surveyed did not see succession planning as a priority and only 9% incorporated succession planning into their business strategy.

When this is put into context, over a third of advisers are looking to retire in the next 10 years and 25% in the next five years, which means a large proportion of the industry are looking to retire in the relative short term without a plan in place.

To exit on your terms, groundwork needs to be put in place: you want to make sure your business is attractive to buyers. Businesses that have been trading for decades are likely to have inconsistencies in their service proposition. It is worth formalising your approach, having a centralised investment proposition and reducing the number of third parties you work with. You may also want to consider segmenting your clients to ensure you are working with clients that are aligned with your target market and are profitable for the services that you offer. You are looking for consistency and to demonstrate the profitability and potential growth opportunities to buyers.

The above will take time, it will need to be done alongside the day-to-day responsibilities of running a business and looking after clients. However, it is necessary to achieve the best offers for your business.

Also, do not underestimate the time it can take to find a buyer that will value the business and client relationships as you do. You may have to have several conversations before you find a suitable buyer and from there negotiations can take time.

As you can see, planning is key. Even if your retirement is not on the immediate horizon, you should be taking steps to maximise your chances of success. No one knows what the future may hold, and timeframes can change, so make sure you are ready well ahead of time.

As always, if you’d like to talk to us about the above or any aspect of your succession plans – please do get in touch with us at: successionplanning@integrafin.co.uk and we will be happy to help.

 

 

1. Introduction
2. Transact Online (TOL) –  Recent enhancements 
3. Integrations – Account opening API
4. Optimising service
5. Successions planning update – Don’t keep kicking the can down the road
6. Transact – BlackRock MPS update
7. Increase to normal minimum pension age
8. Annual limit for pension contributions
9. A study in gifting – the challenge of large-scale wealth transfer
10. Investment Trends UK Adviser Technology & Business Report results
11. Interest on cash
12. Transact events 2025