Planning For The Next Generation Of Advisory Firms

February 13, 2017 By Signator Investors


With the financial advisor population continuing to shrink, and according to Cerulli Associates, nearly 40% of all advisors expected to retire in the next 10 years’, succession planning has turned from a topic that advisors should consider to a requirement that all advisors, RIAs, and broker dealers must work together on to ensure the continuation of businesses and service to clients for future generations.

While the majority of advisors know succession planning is important, they just aren’t completing the necessary steps.  At Signator, we decided that one of the most valuable resources we could provide to our advisors is to assist them with this process. With that in mind, we have created a start to finish succession planning program that provides advisors a step-by-step process allowing them to value, protect, grow and realize the business value they’ve created.  This program not only ensures clients will continue to receive the service and advice they need, but will transition financial advisory businesses to the next generation of advisors.

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Our unique Build4Sucess program includes the following steps:


Signator has a new proprietary practice valuation calculator that takes into consideration all different types of revenue as well as certain practice factors that may increase the value of a business.  Whether you are at or approaching retirement or looking to grow, getting a valuation is the first step in setting the base value for an advisors practice.


A continuity plan is a key part in protecting your business and ensuring your clients will continue to receive service in the event of death or disability.  Signator’s program allows advisors to enter into agreements that will pay their designated beneficiary for the value of their practice and provide their clients continued service.

Step 3: GROW

Once you have protected your business in the short term it’s time to grow.  With our practice management program and advisor team building resources, we provide the information you need to continue to grow your businesses by identifying the key factors that increase the overall value of your practice.  Signator also assists advisors looking to grow by providing financing to purchase other practices.


The final step in our succession planning program is to help the retiring advisors realize the value of their business.  With step-by-step transition planning Signator helps the retiring advisors and successor to successfully finalize the transaction, transfer the business, and maintain client continuity.


Through this program, successful advisors can build firms, attract the next generation of advisors, retain existing clients and engage the next generation of clients, and in doing so, create an advisory business that will last beyond them.



Malcolm Thomas is a Director of Recruiting at Signator Investors, Inc.

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