Is internal succession really the “ideal” advisors imagine it to be? Tyson Ray and Kim Cochenour unpack the realities of selling to team members, family, or merging with another group – and why alignment alone isn’t enough. If you care about protecting your clients, your team, and the legacy you’ve built, this conversation will help you see internal succession in a whole new light.
- In this episode, Tyson Ray and Kim Cochenour talk all things internal succession.
- Tyson sees internal succession as “the ideal that everybody sets out for, but doesn’t necessarily take the time to really implement or build over time.”
- With an internal succession, you create someone who can basically take over the expertise you have running your firm, and that can serve the most important needs of and relationships with your clients.
- Kim explains that international succession is not about selling to an outside buyer or an aggregator… it’s about keeping the business in the family.
- That doesn’t necessarily mean a family member, though – it can be someone who’s already inside of your practice or who’s working within your “ecosystem.”
- Tyson points out that, while there may be some fee forms and other matters involved, an international succession within the same team is a non-client approved event.
- Tyson breaks down the internal succession process that focuses on a team member.
- Kim warns against not having a foundational conversation with relevant team members even with people you’ve mentored and think you know quite well…
- Citing past guest Nick Arellano, Kim shares an important reminder: alignment isn’t always enough – you need accountability, legal clarity, and a plan in place.
- Tyson and Kim go over the pros and cons of having an internal succession that includes family members.
- Thinking about internal succession with a family member? Ask yourself this: “Are they the best person to run the firm?”
- Tyson and Kim talk about merging your team with another one at your current custodian.
- There are three main internal succession paths: you can sell to a team member, you can sell to a family member, or you can merge with another team at the same custodial platform.
- Regardless of the path you choose, you have to have a plan, some clarity, and some structure to help avoid the conflict for you and your clients, and the legacy you’ve built.
Mentioned in This Episode:
TotalSuccession.com
TotalSuccession.com/podcast
FORM Wealth Advisors
Tyson Ray
Kim Cochenour
Nick Arellano
Previous episode - Succession and Exit Planning: What 40% of Advisors Must Face in the Next 7 Years with Nick Arellano
