ipac launches succession guide
Unexpected financial challenges and health scares are two factors currently leading planners to address their succession plans, according to ipac’s John Saint.
A focus on client retention over attracting new business and the impact of falling revenue is putting pressure on planning firms said Saint, ipac’s head of business partnering.
Those looking for a succession plan today potentially face disappointing sale prices and need to look for a solution that enables them to lock in and exit at the point where markets recover and profitability recovers, Saint said.
While some planning firms may need to unlock capital from their business, “a smart succession plan can deliver cash today without giving up control and without losing the opportunity to sell the business for a better price in the future”, Saint said.
“What they really need to do is seek out a succession solution which enables them to lock in and exit today, keep control of their business yet still have a solution for the future, so that when markets recover they’ll be in a position to maximise or optimise the value of their business.”
In response, ipac has created a succession planning toolkit that covers critical issues, including how to involve clients in succession planning and identifying the drivers of business value. The guide for planners also covers information on how to negotiate the best outcome and what makes a business attractive to different buyers.
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