How to Communicate Your Business Succession

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

The financial media regularly features stories about the demographic challenges of the industry: aging advisors who build robust practices and are wondering who will succeed them and serve their clients after they retire or pass away. Creating your succession plan is a must. It’s also smart to prepare communications about the succession well in advance. How you communicate to your staff and clients is critical to their experience of the process.

Below are the components of a succession communications plan and the steps to take to put them together. Working through these steps is useful and rewarding exercise.

Identify your key constituencies

A successful financial advisory practice can touch a lot of people. Think through all the people who will need to know if you were unexpectedly out of the picture. Here are a few:

  • Clients
  • Employees
  • Partners in your firm
  • Board of directors
  • Regulators
  • Landlord
  • Bankers, accountants, lawyers or other service professionals
  • Media
  • Community, church or places where you’ve volunteered