Navigating Succession Planning in Financial Advisory With Dustin Mangone [Episode 329]
What You'll Learn In Today's Episode:
- Gen 2 advisors must initiate succession conversations early.
- Sellers often underestimate the importance of planning for retirement.
- Understanding financing options is crucial for both buyers and sellers.
- Proactive communication can lead to successful transitions.
- The market for buying practices is more organized than ever.
- Buyers should be aware of the risks associated with aggressive deal structures.
- Cleaning up financials can significantly impact the sale process.
- Personal guarantees are common in lending for advisory practices.
- Advisors need to understand their borrowing capacity before negotiating deals.
- M&A reports may not reflect the true state of the market.
In this episode the host Matthew Jarvis and guest Dustin Mangone discuss the intricacies of succession planning for financial advisors, particularly focusing on the roles of Gen 2 advisors in initiating conversations about internal succession. They explore the importance of being proactive, understanding market dynamics, and preparing financials for a successful exit. The conversation also delves into common pitfalls in deal structures, financing strategies, and the realities of M&A reports, emphasizing the need for advisors to be well-informed and prepared in a competitive market.
