Successful Succession Planning: 10 Questions to Ask

Transcription

1 Successful Succession Planning: 10 Questions to Ask Practice Management This material is provided courtesy of CNL Securities Corp. Please abide by your firm s corporate compliance policy regarding the approval and usage of practice management materials CNL Intellectual Properties, Inc. All Rights Reserved. CNL and the Squares Within Squares design trademarks are under license from CNL Intellectual Properties, Inc. CSC BD

2 About the Presenter John A. Rhodes Jr., Ph.D., serves as vice president of Practice Management for CNL Capital Markets Corp., an affiliate of CNL Securities. Dr. Rhodes has served in the financial industry for more than 30 years. 2

3 About the Program CNL s Practice Management program features workshops, articles, webinars and other tools designed exclusively to provide financial professionals with information to help take their career to the next level. 3

4 Why Succession Planning? Every financial advisor needs to have a written succession plan: A small percentage of financial advisors have a written succession plan in place. Even fewer know their broker-dealer s guidelines on succession planning. 4

5 Have You Thought About the Following? What will happen to your clients if you re incapacitated for six months? Who will manage the daily aspects of your business? Who will care for the needs of your family? 5

6 Where to Begin? Succession planning begins with asking the right questions and finding the best answers for you and those important to you. 6

7 The 10 Most Important Nonlegal Questions 1. Do you have an Out-of-Office Plan? 1. Will your staff know what to do? 2. How will your staff and other ongoing expenses be paid? 3. Who will notify your clients, and what will be communicated to them? 4. Who will contact your broker-dealer? 5. Will your family receive income? 6. Who communicates information pertaining to your health to your clients? 7. Is there another financial representative who will assist you during this time? 8. Who has access to your technology? 9. What is the value of your practice if it needs to be sold? 10. Are the answers to these questions in writing, and have the appropriate individuals been informed of their responsibilities for implementation? 7

8 The 10 Nonlegal Questions, continued 2. Do you have an If something happens to me letter ready to be sent to your clients? Sample Succession Letter Dear Client: I prepared this letter in the event of my sudden death. You are special to me, and I wanted to thank you for your business, as well as give you my thoughts concerning the plans we have been implementing to meet your financial needs. I have identified a person who will be contacting you within the next few days. The person is [name]. [Name] has been in the business for many years, and is as devoted to [his/her] clients as I have been to you. We have had many discussions about the process [s/he] will follow. [Name] will be writing you a letter inviting you to come meet with [him/her] to review your current plans and what [s/he] would suggest for the future. Although it will be your decision as to the future of the relationship, I wanted you to have my thoughts and recommended next steps. [Name] is a person I trust completely to care for your financial needs, and I feel you will as well. Thank you again for the opportunity to work with you. I wish you only the best. Sincerely, [Your Name] 8

9 The 10 Nonlegal Questions, continued 3. What does your age have to do with your Succession Plan? 4. Have you asked qualified family members in writing if they would like to be considered as part of your Succession Plan? 5. If you get a yes or maybe from a family member what s next? 6. Do you have the best business model to realize the greatest value? 9

10 The 10 Nonlegal Questions, continued 7. Do you review your Succession Plan on a regular basis? 8. Do your spouse, children or both know the details of your Succession Plan? 9. Do you have an estimated implementation timeline and sequence of events for implementation? 10. Do your clients know of your Succession Plan? FOR INTERNAL USE ONLY

11 In Brief Consider everything Don t delay The unexpected can happen at any time 11

12 Comments/Questions 12

13 CNL Securities CNL Center at City Commons 450 S. Orange Ave. Orlando, FL For questions about today s seminar, please Dr. John Rhodes, John.Rhodes@cnl.com. To learn more about CNL s Practice Management program, visit CNLSecurities.com. Follow us on LinkedIn 13