Among advisors who are within two years of transitioning their practice to a successor, just over four in 10 lack a succession plan, according to a new survey.
NFP Advisor Services Group, a business segment of National Financial Partners Corp., New York, published this finding in a survey, “The Efficient Frontier of Succession: Maximizing Practice Value.” The survey is based on the results of a March 2012 poll of 227 practice owners and interviews with leading buyers of advisor practices, brokers of practice sales, and consultants in the financial advisor marketplace.
Of those advisors who are within two years of transitioning their practice to a successor, 42% lack a succession plan, the survey says. An additional 13% have a plan but do not have all the elements in place to execute.
As a result, the report adds, 54% of practice owners who lack a succession plan do not know the value of their practice.