What happens to the smallest clients
Your firm may have households below the level at which a servicing model pays for itself. Ask a buyer what will happen to them.
Your firm may have households below the level at which a servicing model pays for itself. Ask a buyer what will happen to them.
Ask any buyer what happens to your smallest clients.
You may have clients such as these: a widow with ninety thousand pounds whose husband you advised for twenty years; a former colleague’s daughter you took on as a favour in 2011; a client whose pot was substantial before three years of drawdown.
The answer shows how a buyer’s commercial model and their stated values fit together. Servicing a household at that level to a full annual-review standard does not pay, at your firm or at theirs.
These are the answers you are likely to hear.
Pick an actual household from your own book, the smallest one you would be sorry to see badly served, and ask what will happen to them. Compare that answer with the buyer’s general policy.
Under Securo a trainee adviser contacts the smaller households during the re-engagement stage, while you are still advising. This shows which clients want an ongoing relationship and which have not wanted one for years. You decide what happens to each client while you are still there, client by client.
Where a household would be better served by another firm, tell them yourself.
A successor may already work at your firm. Internal succession most often fails because the successor cannot raise the money.
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The same multiple can produce different amounts of money depending on what it is applied to, when it is paid and what conditions attach.
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Who is buying, how the price is set, what happens if you decline, what your clients experience, and the timing of a network’s internal succession route.
Read itSteven Bates, Director of Advisory at Equity & General, takes the first call with every adviser. Ring him on 020 8396 0486 or send a short note about your firm.