As you embark on your 2016 annual planning process, focus on strategies that drive toward sustainability and risk management. This approach isn’t necessarily new – but proposed DOL legislation is likely to make it essential.
“The early bird catches the worm” also holds true for advisor succession planning. Be sure to give yourself time to find someone with complementary skills and shared values.
More advisors are facing the succession challenge as they prepare to retire from the industry. Here’s the story of how two advisors tackled it together.
Although assets under management and revenue typically get a lot of attention when describing advisory firms, from a valuation perspective, profitability is more important. Do you know the profitability of your firm – and strategies that can help improve it?
Whether advisors are looking to sell their firm or grow their business through a strategic acquisition, having a solid understanding of the drivers of valuation is critical. In our view, the common “2x last year’s revenue” approach is overly simplistic and risks disappointing both the potential buyer and the seller. We’ve identified three drivers of enterprise value to focus on instead.
The financial advisory industry is at a generational crossroads: the baby-boomer bulge is reflected in the age of many advisors – and that of their clients. However, most advisors overlook the impact that the age of their client book can have on their firm’s future growth of assets under management – and the value of their firm. What’s the connection between age and the value of a wealth management firm – and what can you do about it?