Advisors contemplating a transition have many reasons for making a move; however, the financial upside is always at the top of the list. Given how hot the transition market is right now, with firms offering ever increasing transition deals to attract the right talent, it may be tempting for an advisor to make a move based solely on a large upfront payout. As Elite Consulting Partners CEO Frank LaRosa and COO Dale Dempsy explain in this episode, make no mistake – that large upfront number is not a deal it’s a loan, and advisors need to consider that when evaluating their transition opportunities.
Key points Frank and Dale cover in their discussion include:
*transition deals as a reflection of a firm banking on an advisor’s future success.
*how firms back into transition deal numbers and the potential impacts on future payout structures.
*is forgoing a transition deal possible and what the economics of making that move might be.
*what succession upside can be realized when utilizing a transition deal as part of a dual-monetization strategy.
There are tremendous opportunities for advisors considering a transition, but it is important to know what you are getting into. Everyone’s situation is different and only you know what is right for you. Consider working with a transition consultant to evaluate your opportunities. Be candid with your consultant about your financial and career goals. Then let your consultant help you navigate the complexities of understanding the transition deals available. This is a strategy for success and ensures you realize not just your monetary goals, but your firm partner goals as well.
