According to the company, the solution will enable advisors to continue serving clients with their entrepreneurial business models while partnering with likeminded Focus partner firms to ensure a smooth transition of their practices once they are ready to retire or in case of a life event.
The solution will be particularly of use to the small and medium size advisors, who have limited choices for succession planning, often exposing their clients and families to the risk of their businesses vanishing, the company added.
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Focus patent-pending succession solution is an integrated program with four modules; a structured diagnostic of the transition readiness of the business known as FIRST, an agreement with a Focus partner firm to manage the business going forward once the principals decide to activate the succession process, an annual certification program to ensure advisors keep their transition plan active and up-to-date and access to Focus’ capital to finance the transition under agreed upon terms.
RIAs can choose to align with the Focus partner firm with the most similar business model, client service philosophy and investment approach, and culture, while RIAs participating in the program can choose to trigger the succession solution any time they choose.
"Less than 40% of RIAs have a formal succession plan in place, causing clients and employees undue anxiety. We are excited to bring our expertise and capital to them and to deliver a viable solution that will mitigate their fears," said Rudy Adolf, founder and CEO of Focus Financial Partners.
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