Tough times need tough decisions

Your guide to creating Exit Strategy certainty.

Research has shown that in the current environment, more and more Principals of advisory groups are focusing on formulating a successful Succession Plan and Exit Strategy.

In the past and even today, principals are not providing adequate incentives to both advisers and key staff. This becomes an issue as businesses start getting more successful, and make it prohibitive for staff to access sufficient funds to buy-in. Staff dissatisfaction can grow rapidly as a result.

On the other hand, having even a minor shareholding will ensure that staff are suitably incentivised in your business.

When it comes to Succession Planning, certainty is the key for Principals -

Certainty of business value

Certainty that the business will change ownership successfully

Certainty that the sale process will extract value for all parties involved, i.e. shareholders, clients and staff

Certainty that once under new ownership, the business will continue to provide a high standard of service to clients, and will remain successful into the future

Planning for your succession is a critical process. With an Exit Strategy successfully implemented, you will be able to enjoy more beneficial results than simply a trade sale of your client base.

You will have provided the incentives your staff need to maintain their dedication and loyalty, and see the company continue its reputation for quality service.

It’s a decision you need to make.