The program targets firms with between $50 million and $300 million in assets. An analysis reveals how prepared a firm is for succession to new owners. Then recommendations are made to make the business better prepared for the transition.
 
For example, if you’ve invested a lot of time and money into proprietary technology, it will not be easy to get that value back out when you sell.
 
Focus Financial doesn’t charge advisors for the service until the firm actually transitions. The advisor chooses a partner at the firm to take over if and when the principals activate the succession plan.
 
The financial terms are laid out in that takeover agreement and advisors have to agree to update their plans each year to ensure the firm remains ready for transition.
 
The agreement can be terminated by either party at any time. The process seems to take a great deal of burden off of advisors who, for whatever reason, have put off such planning.
 
It works as a sort of insurance policy, giving advisors the option for succession but not locking them into executing the plan.

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