6 Types of Estate Plans for Your Advisory Firm
DEAR ADVISORS,
Exit Planning is like estate planning, but for your business! Sometimes you just need a Living Will, but sometimes you need a Trust. Whether you’re just starting out, or seriously considering your exit, it’s your fiduciary duty to have an exit plan in place for your clients.
There are 6 types of exit plans for your advisory firm, based on where you are in your own retirement timeline, and your business life cycle. We’re going to give you detailed action steps for each category over the next few weeks. Today, you’ll want to identify which category applies to you and stay tuned for the action steps!
Beginner’s Continuity Plan - This is like a basic Living Will. It’s ideal for new businesses in their first 1-2 years, with a handful of clients and only a few thousand dollars of annual revenue.
Advanced Continuity Plan - This is like a Living Will with special clauses. It’s ideal for established businesses with an owner still years away from exiting. You don’t plan to go anywhere, but a basic continuity plan probably isn’t sufficient.
Beginner’s Succession Plan - This is like having all your estate documents done, except for a Revocable Living Trust. It’s ideal for established businesses with an owner actively planning to exit.
Advanced Succession Plan - The Buy-Sell Agreement is like a Revocable Living Trust. It’s ideal for established businesses with an owner actively planning to exit.
Merger or Partnership - This is like getting married, where the Partnership Agreement is a Marriage Certificate and Pre-Nuptial Agreement together in one document. Any business at any stage of the business cycle may benefit from a merger.
Growing through Acquisitions - This is like the process of adopting a child, where the selling firm joins the buyer’s firm like an adopted child comes home to a loving family. Any business at any stage of the business cycle may benefit from an acquisition.
Each of these includes many elements of Exit Planning. You’ll know you need help when you get there, so it’s good to have resources in your back pocket. Ellevate Advisors helps with each category, and can provide you with referrals when it’s time to close the deal. The most important step is to just Get Started! There’s no reason to wait to secure the future of your family and your advisory firm with an Exit Plan!
Warm regards,
Brooklyn
P.S.
At Ellevate Advisors, we believe that advisors deserve to retire too. What does that look like for you, your family, and your business? Let’s figure it out together! Click here to schedule an initial phone call with our team today or get to know me on my bio here!