Acquisition International - Issue 2 2022 17 A Smooth Transition next generation talent, evolving their compensation structures, and operating profitable, dynamic businesses that focus on driving value for the end investor,” shares Brad. At FP Transitions, its internal culture keeps the company compassionate about the industry and the clients they work with and directly relates to its national success. “Our culture is incredible, and it is one of the reasons we continue to attract and retain top talent across this industry. We practice what we preach to our clients - a living example of the work we do for others,” states Christine Sjölin, Partner and Vice President of Strategy and Operations. With FP Transitions buckling in for the storm, and due to its incredibly dynamic and reassuring company culture, its team of highly dedicated and creative individuals were able to react quickly to the pandemic. As a result, while there was a quiet turn in the early side of 2020, by mid-May, the company was in full effect and ready to continue its efforts to build and fortify tomorrow’s advisors. Brad discusses the increasing issue of this factor by stating, “Advisory firms, especially independent firms, should be built to serve the entire client need horizon, while many aren’t. The problem likely stems from the fact that advisors have acquired clients and are most often charging by AUM (Assets under management), which causes a higher minimum ($100,000+ in assets). So, by the time a client has enough wealth to seek out an advisor, they seek someone roughly the same age, and then suddenly we have a high risk of this advisor potentially retiring at the same time as their clients.” Retirement is one of the most significant moments for a financial planning client’s advisor relationship. Therefore, FP Transitions’ consulting work focuses heavily on engaging the right junior talent to transition the ownership and management of the firm thereby ensuring clients will be cared for when founding members or owners turn the establishment over to a new generation. FP Transitions is confronting this issue by aiding firms in spreading out their equity within practices, as well as encouraging advisors to seek someone with the right skills for the role. For example, an owner may need to recruit three or more junior partners, buying into the firm over several years, in order to ensure the firm has a sustainable future. FP Transitions is also engaged in research and programs intended to solve many of the overarching issues found across the financial planning and wealth management landscapes. The company has captured essential data points on businesses and has formed a Business Intelligence team to constantly measure and monitor the catalysts for growth and transition, evolution, and sustainability across this vast network of independent advisory practices. Moreover, FP Transitions is heavily invested in leading the ‘talent revolution,’ which involves revamping compensation structures, spreading equity within entities, ownership training, and many other aspects that the company firmly believes the industry needs to build enduring and sustainable businesses. Company: FP Transitions Name: Jess Flynn, Director of Communications Email: Jess.Flynn@FPTransitions.com Web Address: https://www.fptransitions.com/
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