Like many, insurance is not my first career, nor do I anticipate it being my last. When I transitioned into insurance to be the best in class, I made it a point to align my skill set with other’s who would compliment what I do for clients. This is how I came to be another advisor’s succession plan.
When we founded our partnership, it was with the strategic game-plan of knowledge transfer, learning, having a cushion for failure within a set time frame to when I would take over the practice. The expected financial arrangement was decided as we formed the partnership and the legal framework was all completed.
When the time came, which for me seemed to take forever, for my partner, all too soon, we proceeded and I am pleased to say, for me, it went to plan. For my partner, the financial and personal side went well, but we didn’t understand at the time the importance for that third leg of the stool—NEXT and while everything from a legal and accounting standpoint went according to plan, I think there was regret, identity crisis, and emotional loss for my partner.
This is a common story and one with a semi happy ending.
Other stories are not so streamlined. Stories of a father | son partnership where no formalized paperwork was completed, though everything was understood and talked about, but nothing in writing. When the father died unexpectedly the son found out he owned nothing. None of the business would transfer to him. Then came the legal battle and substantial costs.
You know some of these stories. Advisors bringing on younger associates to work the business with the intention to succeed to them, but time lags, no paperwork is completed and the younger advisor keen to make their own mark, moves on. Or those who have started the paperwork, made the plan, but haven’t completed the oh, so necessary knowledge transfer and a health event or untimely death (all death is untimely, really) results in significant tax consequences, paperwork nightmares, loss of customers, loss of reputation and on and on.
Suffice to say, I am passionate about succession planning being incorporated into the strategic business plan, visited often and updated regularly.
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Note: this was written without the aid of Artificial Intelligence (AI)
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