Investment Advisory White Paper

How Access to Financing Affects Advisors Plans for Business Succession

Planning for an orderly business succession seems to be one of those professional best practices more honored in the breach than the observance, especially among financial advisors. Independent research shows that fewer than 40% of all advisors—including those affiliated advisors who count on their broker-dealers to provide a backup plan—have a succession plan. Among Registered Investment Advisors, 36% report having a succession plan. In addition, those advisors who have taken the time to craft a plan have not necessarily mastered the logistics for executing it successfully. This study examines the importance of available financing to advisors’ confidence in being able to fulfill their succession plans.

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