Kitces and Carl - Real Talk for Real Financial Advisors Should Internal Succession Plans Provide A G2 Discount For Lack Of Affordability?: Kitces & Carl Ep 136
11 snips
Apr 18, 2024 Kitces and Carl discuss challenges in internal succession planning for financial advisors, including valuation complexities, buyer and seller approaches, and the importance of fair pricing. They delve into the impact of education and bank financing on buying advisory firms, as well as strategic approaches to gradual internal successions for financial stability.
AI Snips
Chapters
Transcript
Episode notes
Price Negotiation Reveals True Fit
- Price disagreements reveal whether an internal succession is truly viable.
- Sellers and buyers often only discover fit when they negotiate the price.
Value The Practical Savings
- Quantify transaction conveniences (no agent, quick close, no inspections) as financial value.
- Use those quantified items to justify a modest internal discount to the seller.
Client Retention Is The Core Risk
- A key seller risk is that clients won't follow the buyer, creating contingencies or deal failure.
- Internal successors reduce that risk because they already know clients and service expectations.