The single greatest failing of a revenue-sharing or “eat-what-you-kill” arrangement is that it makes the bottom line irrelevant to all but the founder, who alone, late at night, worries about increasing overhead. Sharing profit distributions with younger advisors who invest in the business directly addresses this issue.”
David Grau Sr., president and founder, FP Transitions. |
How Independent Advisors Can Remodel Cash Flow to Build Businesses of Enduring Value
David Grau Sr. | wealthmanagement.com, July 2014
Read the article online >Summary: The challenge of succession planning is really about examining an independent advisor’s aspirations for his or her own legacy. Where past generations of independent advisors may have been content to treat their practices primarily as income-generating vehicles, more and more advisors today are waking up to the reality that they want much more than that.