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Smart practice

Wednesday 01 January 2014

Succession planning still an issue

Despite much talk in the market about succession planning, significantly less than half (38%) of the practices who responded in the 2014 Financial Planning Benchmarking Report had a succession plan in place.

Why?

It’s hard. And often, the need for a succession plan arises out of the blue; for example, an unexpected breakdown in a partnership or a principal suddenly falls ill. If there’s no plan, this can place unnecessary, additional stress on the business and the individuals involved.

Plans to sell are on the rise

Plans to sell to another practice have been on the backburner during the past few years, but this year the number of firms planning to sell has increased from eight per cent to 22 per cent.

Recently, we have also seen advisers working hard to streamline and improve their business models in response to challenging conditions. The results of these efforts are starting to show. For those advisers who have been delaying selling until performance and circumstances improved, now may be a more attractive time to consider exiting. 

The Macquarie 2014 Financial Planning Benchmarking Report is now available, featuring performance metrics and valuable insights into the link between confidence and success.

 

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