Succession planning. How to build value in your business

Financial Advisory

13 October 2022

Client ExperienceCultureFinancial AdvisoryGoals-based planningIndependent Financial AdviserWinning Advisers

Expert: John Chapman Facilitator: Lucy Grier, Benchmark Capital


  1. Only 12% of IFA firms have a documented succession plan in place, but it is an essential part of the long-term planning for a business that there is one
  2. The process - whether selling internally or externally - can take between 3 and 5 years so it is important to plan early
  3. An internal succession plan can be an elegant solution – handing over the keys to trusted staff can provide the best possible client experience; it can be highly motivational for staff; and removes the uncertainty of selling to an unknown entity


Key takeaways:

The M&A market is very hot at the moment, but there are other solutions to succession planning and firms should explore the potential of all succession routes, including management buyouts (MBO) and Employee Ownership Trusts (EOT).

The key activity is to develop a succession plan and to get help in facilitating your thoughts and writing the plan. It is your future, you work on lifetime plans for your clients, don’t forget your own.

Your business and team culture drive your business and you should try and ensure, as far as possible, that the culture of the firm you sell to is well aligned with your own. You know that selling internally will maintain your culture – don’t risk the long-term wellbeing of your staff and clients by selling to a firm that has a totally miss matched culture to your own.