Three Core Values of Succession Planning

At Great Valley Advisor Group, we approach succession plan strategy with three core values in mind – customization, continuity, and confidence.  Whether you are an advisor considering retirement, making a career change, or simply looking to exit the industry, it’s important to have a clear strategy in place to ensure a smooth transition for both your clients and your business.

While succession planning is often thought to apply primarily to those looking to wind down, here at GVA we provide each advisor joining the firm the opportunity to one. We have seen how life can throw a curveball, and thus enforce this requirement to stay a step ahead of the unexpected.  Should one of our advisors find themself in a situation where they need to rely on a succession solution, a plan they have designed and approved is already in place and the advisor can be confident it will be properly executed.

Upon joining GVA, each advisor is provided a firm standard succession plan agreement.  Our unique agreement offers the purchase price of the sellers book equal to the BOBValue, as determined by AdvisorBOB, on a monthly basis.  Our advisors can rest assured knowing that business growth is reflected in the sales price of their book on an ongoing basis.  With GVAs suite of technology an included benefit of joining the firm, advisors are able to see that valuation each month and know that price shall be paid to their designated beneficiary.

Creating details of a succession plan is a significant undertaking that requires careful planning, open communication, and a strong focus on client interests. GVA encourages each individual advisor to communicate their succession plan with their clients.  We aid advisors with every aspect of the transition, ensuring that their clients are always surrounded by the highest level of service, while at the same time allowing the advisor to move onto their next phase of life without the stress of a complicated or unplanned transition process.

Our proven process outlined in the strategies and best practices listed below frame an exit strategy and a monetization event.

  1. Identify potential successors: Identify other advisors within your firm who have the necessary skills, experience, and credentials to effectively serve your clients. Additionally, joining a larger practice like GVA offers the advantage of finding an advisor within the RIA or one who is seeking to join our RIA.
  2. Communicate with clients: Open and honest communication with your clients is essential. Be transparent about your plans to execute your well thought out succession plan. Help them get comfortable with the idea of the transition and introduce them to the person or team who will be taking over the management of their accounts.
  3. Develop a transition timeline: Establish a clear timeline for the wind-down process and client transition. Account for the time needed to meet legal and compliance requirements, notify clients, and complete any necessary training or handover period for the successor.
  4. Create a client transition plan: This should include ensuring that client accounts are properly transferred, updating client documentation, and providing ongoing support to help clients adjust to the change.
  5. Retain key staff: If possible, retain key staff members who have strong client relationships and an understanding of your clients. Their support during the transition can be invaluable in maintaining client satisfaction and business continuity.
  6. Seek legal and financial advice: Consult with legal and financial professionals throughout the agreement phase, and the transition process. They can help you navigate the legal and financial complexities and ensure you make informed decisions throughout the process.

If you have any questions about succession planning with GVA we encourage you to reach out to GVA Operations: operations@greatvalleyadvisors.com.

Securities offered through LPL Financial, member FINRA/SIPC. Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor and separate entity from LPL Financial.

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