Premium Wealth Management releases succession planning Safety Net for advice firms
Member-owned financial planning group, Premium Wealth Management, today announced the launch of the next phase of it’s succession planning program ‘Succession Ready’; The Premium Safety Net.
The Premium Safety Net provides Premium advisory firms with an immediate solution to preserve the value of the business and removestress for families in the event of unexpected illness or death of key advisors.
Premium CEO, Paul Harding-Davis said Premium has already developed a comprehensive succession planning strategy and that this addition will be of particular value for small advice firms and those dependent on one or two key advisors. “This solution was developed after we consulted with one of practices that relies upon a sole principal.
He was concerned about the interests of his partner, should something unexpected happen to him,” he said.
“And he was right to worry; I know of one instance where the principal of a small firm passed away unexpectedly and his wife could not even access the business accounts.”
“If the lead or co-lead of an advice firm becomes ill or passes away, this can leave the family, the firm and clients in tenuous and difficult position. The familywill be under considerable stress and the value of the business can quicklydiminish as clients look for another group to handle their affairs. We believe the Safety Net will create some comfort for for the family in a difficult time and will help ensure the value of the business is preserved.”
Under the plan, Premium can take immediate charge of the business to help ensure client needs are met and value is preserved.
“More importantly, we will also rapidly deliver a payment to the family, which can help ease the pressure at what will be a difficult time,” Mr Harding-Davis said.
“Over the next 12 months to two years, we will work with the family tor estate administrators to identify the best exit strategy for the firm and maximize sale value.”
Terry Bell of Business Health said he thought theinitiative was an innovative solution to a far-reaching problem.
“For 12 years I have been providing a range of diagnostic and support tools for advice firms on viability and profitability. I think the solution developed by Premium is innovative and creates a win-win for the family, the estate and the business. I also think it clearly demonstrates Premium’s commitment to its members and their clients.”
Mr Bell helped Premium develop its original Success Ready program. Mr Harding-Davis said he believed these programs were a strong differentiator for Premium.
“We know that taking care of the ongoing needs of our members and their clients, is just as important as solving any current issues. Therefore, at Premium we aim to develop solutions that preserve and protect current and future value and relationships.”
25 July 2012
