Seeking Advice on Becoming a Succession Partner
Good afternoon, everyone,
I’m reaching out to gather insights from the community about the process of becoming a succession partner with a retiring advisor, compared to purchasing a book outright. From ages 21 to 29, I managed a $50 million office at Edward Jones and held a partnership role before transitioning to independence. Though I was heavily invested in the CFA program and completed my CFP education, I was unable to sit for the exam due to health reasons. I pride myself on being a dedicated professional who always prioritizes the needs of my clients.
At this stage of my career, I believe that partnering as a succession advisor with an independent advisor who has a moderate to large fee-based AUM (between $50-200 million) would be the most beneficial move. I want to ensure that I don’t get taken advantage of, but I’m open to making what I consider a generous offer—possibly involving compensation for the retiring advisor if they agree to stay on part-time for a year to facilitate a seamless transition. My preference would be to pay for the book over 4 to 6 years based on a percentage of revenue rather than opting for an upfront cash payment or a loan. As long as my living expenses are covered, I would be more than willing to share a larger percentage of the revenue, as I value the long-term potential of owning the book.
Trust, much like in a client/advisor relationship, is paramount. The selling advisor would need to have confidence in my ability to maintain and grow the business while ensuring that their clients—whom they likely hold in high regard—continue to receive excellent service.
I’m based in Sarasota, FL, but I’m open to relocating, preferably within the state due to family commitments.
Given all this, where would you recommend I begin? I recently joined FinLink but want to craft a thoughtful approach before reaching out to local advisors.
Would it be appropriate to call or visit local offices to gauge interest? As someone who is proactive and willing to put in the work for success, I’m mindful not to overstep any boundaries.
I would greatly appreciate any advice or suggestions you may have. If you have experience in these types of arrangements or know of any opportunities that I might not be considering, I’d love to connect over a phone call.
Thank you!
One response
Hi there,
It’s great to see such a proactive approach to your career in the financial advisory space! Transitioning into a succession partnership can be a fantastic opportunity, especially with your experience running a successful office and your educational background.
Here are a few suggestions on how you might proceed:
Networking and Building Relationships: Rather than directly spamming local advisors, consider reaching out to your network for introductions or referrals. Attend industry events, conferences, or local meetups where you can connect with retiring advisors in a more personal and professional way.
Craft Your Pitch: When you do reach out, have a clear value proposition. Be ready to articulate why a succession partnership with you would be advantageous—your experience, client-first approach, and willingness to support a smooth transition are all strong selling points.
Utilize Online Platforms: In addition to FinLink, consider platforms like LinkedIn to connect with potential candidates. Share your thoughts on succession planning or related topics to position yourself as knowledgeable and engaged in the industry.
Direct Outreach: If you decide to contact local offices directly, personalize your messages. Explain who you are, your goals, and why you’re interested in working with them specifically. Some may appreciate the direct approach, while others might prefer a more indirect introduction.
Consult with Other Advisors: Seek out mentorship or advice from advisors who have gone through similar transitions. They can share insights on the process, what worked for them, and what to watch out for.
Explore Broker-Dealer Networks: If you have a preference for remaining affiliated with a particular broker-dealer or firm, reach out to them for any succession planning resources they may offer. They might have leads on advisors looking for succession partners.
Be Open About Your Offers: When you find a retiring advisor, be transparent about your intentions and the structure you envision for the partnership. Trust is indeed crucial in these relationships, so being upfront will facilitate a more genuine connection.
Legal and Financial Guidance: Ensure you consult with legal and financial professionals as you craft your succession plan. Having a structured agreement in place will not only protect both parties but also provide peace of mind.
Remember, patience is key in this process. It may take time to find the right opportunity, but nurturing relationships in the industry is invaluable.
Best of luck in your search, and don’t hesitate to reach out if you have more questions or need support along the way!
Best,
[Your Name]