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A Checklist for Succession Planning

Agency owners should think of succession planning as a five-year process to do right, said Chip Roame, managing director of Tiburon Strategic Advisors in Tiburon, Calif. 
 
It doesn’t have to be an intimidating process, either. There are ways to add value to your firm, Roame said, adding that most owners are focused on that area. “You might think about changing your price point, or you might want to change your services,” he said.
 
“You might want to hire different people, or you might want to put in different technologies. All of those things can make one’s business more attractive to a potential buyer, but all of those things take a lot of time.”
 
Tiburon identified a checklist of the six steps to successful succession planning:
  1. Identify appropriate financial advisor coaches who focus on succession planning. 
  2. Clarify objectives.
  3. Obtain business valuation. 
  4. Consider alternatives. 
  5. Execute internal transition (if chosen). 
  6. Execute fallback business continuity plan. 

 

Agency owners should think of succession planning as a five-year process to do right, said Chip Roame, managing director of Tiburon Strategic Advisors in Tiburon, Calif. 
 
It doesn’t have to be an intimidating process, either. There are ways to add value to your firm, Roame said, adding that most owners are focused on that area. “You might think about changing your price point, or you might want to change your services,” he said.
 
“You might want to hire different people, or you might want to put in different technologies. All of those things can make one’s business more attractive to a potential buyer, but all of those things take a lot of time.”
 
Tiburon identified a checklist of the six steps to successful succession planning:
  1. Identify appropriate financial advisor coaches who focus on succession planning. 
  2. Clarify objectives.
  3. Obtain business valuation. 
  4. Consider alternatives. 
  5. Execute internal transition (if chosen). 
  6. Execute fallback business continuity plan. 

 

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. Follow him on Twitter @INNJohnH. John may be reached at [email protected].