Succession Issues for Financial Planners - Succession Plus

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Succession Issues for Financial Planners

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Succession Issues for Financial Planners

By , October 14, 2010

According to John Birt from Radar Results, the number of financial planners seeking advice on selling their business has increased dramatically since the Federal elections. He states that based on feedback, planners believe that Bill Shorten, Minister for Financial Services and Superannuation will be more forceful in getting the reform package through Parliament, which would see the banning of commissions and various other reforms that planners believed would impact on revenues.

Historically buyers of financial planning businesses were focused on revenues, but according to Tony Fenning, Shadforth Financial Group chief executive, he thinks the days of paying a number based on revenue should be over. The group is only interested in the underlying profit of the financial planning business, and a lot don’t have much profit.

While Shadforth was seeing plenty of opportunities for acquisition, they are not willing to to pay vendors what they are asking. Fenning notes that the effects of the regulatory regime are that those businesses are worth less today than they were a year ago, 5 years ago or even 10 years ago, and they’re getting worth less each day or month or year.

Financial planners that are looking to sell their business need to adopt the same principals as other business owners, and have a long term strategic plan that focuses on the profitability of the business. At Succession Plus, we believe the minimum time frame to maximise the wealth in a business is 5 years.
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Craig West

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners and strategies to build, maximise, protect and extract wealth as a business owner.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.