Succession Planning in Ensemble Financial Planning Practice

Succession Planning in Ensemble Financial Planning Practice


This case explores the issues of business owner exit and entity succession. Currently, advanced age and impending retirement of many financial planning practice owners promise to limit sales prices of firms at retirement. Furthermore, an inadequate talent pool limits the opportunity to build for transition. ABC Advisors has three partners, each owning equal shares of the business, and all Certified Financial Planners. The ages of the three partners are 70, 60, and 40. The firm has four additional employees filling three roles. The ABC Advisors’ goals are to retire the oldest partners in 5 years and 10 years, respectively, and, strategically, to triple their 2018 assets under management in 5 to 10 years. ABC Advisors decides to build up the business and stay competitive. The firm has three scenarios that will address their short-term capacity issues but not their long-term strategic sustainability. Using the Financial Planning Career Paths Guide of Certified Financial Planners, multiple strategies are discussed that will help the firm develop its own talent and buyer-shareholder pools to achieve its goals. Students are invited to develop strategies for ABC.

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