Continue The Relationship After The Succession

One of the challenges advisors face as they work with business owners on their succession plan is maintaining a relationship with that organization after the founder has moved on, says Terrence Kral, a partner with Kral, Goodenough & Kral, Inverness, Ill. “Will the next generation of owners feel the same about the original owners advisors or will they want to bring in their own?”

The insurance advisor can try to lock in his relationship with the business by implementing and managing the companys group insurance program and retirement plan, says John Oliver, vice president of strategic marketing services, Transamerica, Los Angeles.

Furthermore, Oliver suggests advisors do multi-generational planning when working with family-owned businesses. “The advisor needs to build a relationship with the children at the same time as theyre getting ready to take over the business.”

Kirk Rogg, senior vice president of AON Talent Consulting Group, Kansas City, Mo., agrees with this approach, and adds that even when not working with a family business, advisors need to be working closely with all key people of the firm. “An advisor who is working with a senior leader to identify and understand who the potential successors are should know where to focus in terms of building relationships with the potential successors,” he says.

“Build relationships not only with the senior leader, but with multiple people in the organization,” Rogg advises.

–Barry Higgins


Reproduced from National Underwriter Life & Health/Financial Services Edition, February 20, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.