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In search of the Optimum Continuity Accomplice

Having a continuity companion in your observe is vital to make sure continued service, workers involvement within the transition, and monetary safety for your loved ones within the occasion you’re unable to take part within the enterprise. With out one, you run the danger of making service disruptions, workers confusion, and pointless household stress. Plus, within the occasion of everlasting incapacity or demise when there is not a continuity settlement in place, fiduciary accounts are stripped of charges and transformed to brokerage accounts instantly. In brief order, your income stream could considerably decline. Finally, for an impartial advisor, this disruption of revenue typically leads to diminished shopper retention and a enterprise fireplace sale.

So, the place do you start? In some methods, looking for the optimum continuity companion will not be a lot totally different from discovering a life companion. Over time, I’ve noticed not less than three distinct approaches to discovering a continuity companion that correspond to methods much like what we discover within the relationship sport.

Swipe Left or Proper

Should you’re like many advisors, it’s possible you’ll desire a easy strategy like that provided by Tinder. In case you’re unfamiliar with this digital date-seeking expertise, let me briefly clarify the Tinder app. People in search of dates add photographs of themselves for assessment; reviewers then undergo the photographs, swiping left (not a match) or proper (potential match) in accordance with their curiosity.

Tinder is fast, straightforward, and doubtlessly yields quick outcomes. When in search of a continuity companion, you need to use the same technique. First, request a listing of native advisors and their contact info out of your dealer/vendor. Then, analysis their agency web sites; if somebody’s skilled profile “appears good,” attain out to her or him to gauge curiosity in a partnership. This strategy will be particularly helpful should you’re new to a geographical space or to a agency. It’s additionally excellent if you wish to observe speaking to different advisors about becoming a member of as continuity companions, with out the embarrassment of imposing on a colleague you recognize effectively.

One vital level to bear in mind right here: by choosing a companion primarily based on a floor profile, it’s possible you’ll miss elements of the observe that don’t align together with your shopper, workers, and household wants. This strategy is unlikely to yield long-term outcomes until each events are keen to place within the time to make it work.

Compatibility Matching

The subsequent technique depends on the ability of algorithms to make private connections. These algorithms are behind the dozens of internet sites, together with, eHarmony, OkCupid, and, that aspire to assist potential mates discover a match primarily based on frequent standards. Every takes a barely totally different strategy and appeals to a specific market. However for many of those websites, the important thing to creating a match is discovering frequent floor.

In the same vein, it’s worthwhile so that you can discover frequent floor together with your potential continuity companion by performing your due diligence earlier than agreeing to a binding authorized contract. By doing an intensive evaluation of one other’s observe, you could find a companion and agency that aligns with you and your observe. Listed below are only a few areas to contemplate: 

  • Variety of purchasers and households, common family dimension, and so forth: This info supplies a high-level gauge of the effort and time required to service the shopper base. It additionally helps a purchaser decide if she or he will have the ability to efficiently take in the bought observe.

  • Income and manufacturing: These figures present helpful info for a professional forma estimate of inflows. Normally, three years of numbers can inform the story of a observe’s progress.

  • Trailing 12-month income by kind: Advisory recurring, non-advisory recurring, and non-recurring income streams could signify alternatives, in addition to challenges, for the shopping for advisor.

  • Observe focus: Does your observe give attention to complete monetary planning, transactions, funding administration, insurance coverage, or fee-only? An incompatible strategy to purchasers tends to lower retention, though there could also be alternatives for conversion.

  • Shopper area of interest (if any): Area of interest purchasers sometimes demand specialised data and sensitivity that the shopping for advisor could or could not possess.

  • Employees concerns: Within the occasion of incapacity or demise, will the workers be prepared and capable of step in? Will they keep past the tenure of the departing advisor? Will the client want them in a transition? Will the client be keen to maintain workers on? Will the workers combine effectively?

  • Workplace effectivity: Will the workplace proceed to run with out the departing advisor? Are there repeatable processes? Are they appropriate with the client’s processes? Are there written procedures, together with catastrophe restoration procedures?

  • Geographic dispersion: Location can have an effect on scalability and usually is seen as a legal responsibility in a observe.

  • Compliance file of the promoting advisor: What’s going to the shopping for advisor be inheriting?

  • Shopper age: What’s the broad image of purchasers by way of accumulating, sustaining, and harvesting funding financial savings?

As with all good match, you’ll not be appropriate in all of those areas. However being aligned in as many as potential places the chances in your favor of a long-term connection that is smart for you, in addition to on your workers, purchasers, and household.


Typically, there’s no substitute for an old school, low-tech introduction. Your pals and associates typically know you effectively sufficient to introduce you to the form of particular person with whom you’re more likely to be appropriate, or not less than somebody you’ll like! Equally, a great way to fulfill a possible continuity companion is to easily ask your colleagues, house workplace workers, and enterprise associates in the event that they know of somebody who could also be keen to function your backup and, finally, purchase your online business.

The Commonwealth Method

Right here at Commonwealth, the Observe Administration crew collaborates with affiliated advisors and prepares greater than 100 continuity plans yearly. Listed below are simply among the steps we take:

  • Make introductions to different Commonwealth advisors and assist analyze continuity compatibility.

  • Preserve a useful resource financial institution of greater than 300 Commonwealth corporations keen and open to being a continuity companion.

  • Develop checklists and agendas to assist set up significant connections with potential continuity companions.

  • Present instruments to investigate corporations and to determine a spread of market-realistic costs and phrases.

  • Put together templates for buy-sell agreements.

  • Evaluate buy-sell agreements to make sure that they align with FINRA insurance policies.

  • Ease the transition with a devoted Enterprise Transitions Process Pressure.

Are You Prepared?

No matter technique you determine on, keep in mind that no methodology is ideal. However some are typically higher than others, given your particular circumstances and distinctive necessities. So, are you prepared to leap into the relationship pool?



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