Practice Management Implementing an impactful succession plan

Invesco Global Consulting
Older female financial advisor working with businessman at office

Key takeaways

  • The challenge:

    If you’re acquiring or retiring a practice, what you say, when you say it and how you say it to clients matter.

  • Our solution:

    Succession plans in our view need a clear, concise, and consistent communications strategy in order to be successful.

  • Our program:

    “Changing the Guard,” our business-building program, is built to help you create a succession plan.

The challenge: Communicating retirement or acquirement to clients

More than one-third of financial professionals will retire in the next ten years, accounting for nearly 40% of the industry’s assets.1 And how a transition is communicated to clients is in our view critically important. Many of those acquiring and retiring are unprepared for the comprehensive planning and communications needed to succeed. Over one quarter of those who said they planned to retire also said they didn’t have a succession plan.1

Invesco Global Consulting turned to word specialist, Maslansky + Partners, in a comprehensive study with investors with the goal of gaining their perspectives and perceptions. How do they want (and not want) the retiring and acquiring financial professionals to communicate to them? What would cause them to leave? Most importantly, what would cause them to gain trust in the transition and the acquiring financial professional?

Our solution: A clear, concise, and consistent communications strategy

Our business-building program, “Changing the Guard,” provides a comprehensive approach to succession planning. Three stages of communications:

1. Announcement

An additional team member is joining the team.

2. Transition

The retiring and acquiring professionals will be working together in the transfer of trust.

3. Completion

The retiring financial professional leaves and the acquiring one announces their new role. 

Ready to pass the torch? 

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    Source: Cerulli Associates, The Cerulli Report - US Advisor Metrics 2022. Used with permission.

Practice Management Center