Selling to an internal partner

Methods and Various Options of Selling a Book

Selling to an internal partner

The definition of retirement to many people is being able to do exactly what they like to do. For financial advisors this often translates to managing a small number of clients and having more free time to spend time with family, friends, golfing and travelling. The beauty of this business is that with proper planning, strategizing and delegating you can do just that. The first step is finding the right partner to take over for you. You may not have to look very far. This partner could be someone already working with you.

There are many advantages to selling your book of business (or part of it) to someone who not only knows you and how you work but also who knows your clients. The transition will be more seamless when the person taking over for you has already established a relationship and trust with your biggest asset, your clients. This could be an existing staff person or an associate advisor.

Financial advisors who invest in the development and training of their staff and associate advisors, with the intention of making them partners in the future, increase the probability of a smooth and successful transition in the future. Communicating your plan to your clients demonstrates your professionalism and care for their financial future. They like knowing who will be there to take care of them after you retire.

Considerations when selling to an internal partner;

· Do your clients trust and respect them?
· Are they entrepreneurial and business minded?
· Do they have similar values, goals and business style?
· Are they ambitious and knowledgeable?
· Are they dually licensed?
· Are they furthering their education?
· Have you discussed business agreements (ie; confidentially, non-solicitation, buy-sell)
· What are their strengths and weaknesses?
· What is their business plan?

If you are working solo in this business you may want to consider adding a partner to your team as part of your succession plan. This allows time for both you and your clients to get to know one another. Many young people graduating from universities and colleges with a business degree have completed the courses required for licensing and in some cases they have completed the required CFP courses. They possess business and technical skills, fresh ideas and will bring energy to your practice. If you are prepared to invest your time, knowledge, trust, and money the possibility of a successful partnership is quite high.

Adding other professionals to your business allows you to delegate and focus on doing the things you like to do best. It will free up more of your time and allow you to properly prepare for your succession. It has taken you many years to build your business. Consider adding a partner that you or your dealership already know and trust to carry on what you have worked hard to build. It will feel like a big load off your shoulders.