In search of the Optimum Continuity Associate

In search of the Optimum Continuity Associate sharing-on-social-media-can-assist-with-nervousness-if-achieved-proper

Having a continuity accomplice in your apply is necessary to make sure continued service, employees involvement within the transition, and monetary safety for your loved ones within the occasion you might be unable to take part within the enterprise. With out one, you run the danger of making service disruptions, employees confusion, and pointless household stress. Plus, within the occasion of everlasting incapacity or dying when there is not a continuity settlement in place, fiduciary accounts are stripped of charges and transformed to brokerage accounts instantly. In brief order, your income stream might considerably decline. Finally, for an impartial advisor, this disruption of revenue usually ends in diminished shopper retention and a enterprise fireplace sale.

So, the place do you start? In some methods, looking for the optimum continuity accomplice will not be a lot completely different from discovering a life accomplice. Over time, I’ve noticed at the least three distinct approaches to discovering a continuity accomplice that correspond to methods much like what we discover within the relationship recreation.

Swipe Left or Proper

In the event you’re like many advisors, you could desire a easy method like that provided by Tinder. In case you might be unfamiliar with this digital date-seeking expertise, let me briefly clarify the Tinder app. People in search of dates add pictures of themselves for evaluation; reviewers then undergo the pictures, swiping left (not a match) or proper (potential match) in line with their curiosity.

Tinder is fast, straightforward, and doubtlessly yields quick outcomes. When in search of a continuity accomplice, you should utilize an analogous technique. First, request an inventory of native advisors and their contact info out of your dealer/vendor. Then, analysis their agency web sites; if somebody’s skilled profile “seems good,” attain out to her or him to gauge curiosity in a partnership. This method might be particularly helpful should you’re new to a geographical space or to a agency. It’s additionally excellent if you wish to apply speaking to different advisors about becoming a member of as continuity companions, with out the embarrassment of imposing on a colleague you recognize nicely.

One necessary level to remember right here: by deciding on a accomplice based mostly on a floor profile, you could miss elements of the apply that don’t align together with your shopper, employees, and household wants. This method is unlikely to yield long-term outcomes until each events are keen to place within the time to make it work.

Compatibility Matching

The following technique depends on the facility of algorithms to make private connections. These algorithms are behind the dozens of internet sites, together with, eHarmony, OkCupid, and, that aspire to assist potential mates discover a match based mostly on frequent standards. Every takes a barely completely different method and appeals to a specific market. However for many of those websites, the important thing to creating a match is discovering frequent floor.

In an analogous vein, it’s worthwhile so that you can discover frequent floor together with your potential continuity accomplice by performing your due diligence earlier than agreeing to a binding authorized contract. By doing an in depth evaluation of one other’s apply, you will discover a accomplice and agency that aligns with you and your apply. Listed here are only a few areas to contemplate: 

  • Variety of purchasers and households, common family measurement, and so forth: This info offers a high-level gauge of the effort and time required to service the shopper base. It additionally helps a purchaser decide if she or he will be capable to efficiently soak up the bought apply.

  • Income and manufacturing: These figures present invaluable info for a professional forma estimate of inflows. Usually, three years of numbers can inform the story of a apply’s development.

  • Trailing 12-month income by sort: Advisory recurring, non-advisory recurring, and non-recurring income streams might signify alternatives, in addition to challenges, for the shopping for advisor.

  • Follow focus: Does your apply give attention to complete monetary planning, transactions, funding administration, insurance coverage, or fee-only? An incompatible method to purchasers tends to lower retention, though there could also be alternatives for conversion.

  • Consumer area of interest (if any): Area of interest purchasers usually demand specialised data and sensitivity that the shopping for advisor might or might not possess.

  • Employees issues: Within the occasion of incapacity or dying, will the employees be prepared and in a position to step in? Will they keep past the tenure of the departing advisor? Will the customer want them in a transition? Will the customer be keen to maintain employees on? Will the employees combine nicely?

  • Workplace effectivity: Will the workplace proceed to run with out the departing advisor? Are there repeatable processes? Are they suitable with the customer’s processes? Are there written procedures, together with catastrophe restoration procedures?

  • Geographic dispersion: Location can have an effect on scalability and customarily is seen as a legal responsibility in a apply.

  • Compliance file of the promoting advisor: What is going to the shopping for advisor be inheriting?

  • Consumer age: What’s the broad image of purchasers by way of accumulating, sustaining, and harvesting funding financial savings?

As with every good match, you’ll not be suitable in all of those areas. However being aligned in as many as potential places the chances in your favor of a long-term connection that is sensible for you, in addition to on your employees, purchasers, and household.


Generally, there’s no substitute for an old style, low-tech introduction. Your mates and associates usually know you nicely sufficient to introduce you to the sort of individual with whom you might be prone to be suitable, or at the least somebody you’ll like! Equally, a great way to satisfy a possible continuity accomplice is to easily ask your colleagues, dwelling workplace employees, and enterprise associates in the event that they know of somebody who could also be keen to function your backup and, in the end, purchase your enterprise.

The Commonwealth Method

Right here at Commonwealth, the Follow Administration group collaborates with affiliated advisors and prepares greater than 100 continuity plans yearly. Listed here are simply among the steps we take:

  • Make introductions to different Commonwealth advisors and assist analyze continuity compatibility.

  • Keep a useful resource financial institution of greater than 300 Commonwealth corporations keen and open to being a continuity accomplice.

  • Develop checklists and agendas to assist set up significant connections with potential continuity companions.

  • Present instruments to research corporations and to ascertain a spread of market-realistic costs and phrases.

  • Put together templates for buy-sell agreements.

  • Evaluate buy-sell agreements to make sure that they align with FINRA insurance policies.

  • Ease the transition with a devoted Enterprise Transitions Job Pressure.

Are You Prepared?

No matter technique you determine on, do not forget that no methodology is ideal. However some are typically higher than others, given your particular circumstances and distinctive necessities. So, are you prepared to leap into the relationship pool?

Supply hyperlink