In an effort to help advisors add long-term value to their firms and leverage succession planning as a growth opportunity, SEI has launched a new Business Pathfinder Program in collaboration with consulting firm FP Transitions and The Bancorp.
The program is designed to help advisors better prepare and plan for a business transition using an integrated and customized approach that assists with all phases of the transition planning process?from initial firm evaluation to final transaction execution.
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The program provides each advisor with a plan and strategy unique to his or her needs and situations. Additionally, aspects of the succession planning process that are typically separate will be fully integrated within the program.
"Unfortunately, 99 percent of advisors don’t have a formal, well-thought out exit strategy or plan for the future, and most firms only last as long as their founder stays in the business," said David Grau Sr., President and Founder of FP Transitions. "What that means is advisors are missing out on reaping the full rewards of the value they’ve spent years building in their firms. We want to help change that."
"When people talk about succession planning, they usually associate it with retirement. In reality, acquisition can be a key aspect of the succession process," said John Anderson, Head of SEI Practice Management Services, SEI Advisor Network. "It takes years of careful planning to have a successful retirement. Along the way, a broader succession plan may include finding acquisition targets to ensure the firm survives and prospers long after the founder leaves."
"What often makes the succession planning process difficult is that there are so many moving parts, including guidance around the all-important financing piece," said Bill Cassidy, SVP and Managing Director of The Bancorp’s Institutional Banking division. "This program will bring all of those moving parts together to help advisors make better succession planning decisions."
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By GlobalDataA recent survey from SEI found that 42 percent of advisors said their biggest challenge in developing a transition plan was identifying an acquisition partner. The Business Pathfinder Program will address this and other challenges related to succession planning through a five-step process:
- Assess the Situation: SEI will work with advisors to complete a practice assessment, exploring succession goals and key information about the business.
- Uncover the Business Roadmap: FP Transitions will use this information to produce a strategic report on the business, including its strengths, weaknesses, and position in the marketplace.
- Determine the Preferred Strategy: The report will help advisors determine the best course of action moving forward. Advisors will decide whether or not they are candidates for a longer-term internal transition strategy or a faster external succession, or if they would benefit from acquisitions or more investment in their firm.
- Prepare for the Transition: FP Transitions will calculate the firm’s value and work with advisors to draft a formal, written succession plan. It will also work to identify potential successors that match up on firm culture and execution.
- Execute the Transaction: To conclude, FP Transitions will help with intricate details including deal support specialized for the niche financial advisory market and the lifestyle succession planning processes many advisors prefer. At this step, advisors can confer with The Bancorp regarding financing.
