Last month, in collaboration with advisors on its Advisor Engagement Council and Enterprise Action Committee, as well as continuity and succession experts in financial services and the business community, Cetera launched a proprietary subscription program available to its network of advisors that can ensure the longevity and value of their business.
The new Legacy Builder Program provides succession and continuity planning to participating advisors in the event of an unforeseen and often tragic exit from their practice. Under the program, Cetera will find a qualified buyer or finance a portion of the transaction with an existing advisor within its network. If another Cetera-affiliated advisor cannot be found, Cetera will ensure the purchase of the advisor’s practice.
The Legacy Builder Program helps monetize the value of an advisor’s life’s work and provides financial stability through the client transition process to the next generation of owners. Core to the offering is an online valuation platform provided by Truelytics, which helps to access the value of the practice, as well as provide clear and actionable ways in which to get the most out of a firm’s value.
Porter said he’s already filled out his application to the program and intends to send it out as soon as possible.
Financial Advisor asked Porter what he learned from the experience of acquiring another advisor’s practice after the owner’s sudden and unexpected exit from it.
“When you’re doing a succession plan, make sure you’ve got a compatible business,” Porter said.
Asked if he would do it all over again, Porter said yes. However, he cautioned other advisors not to assume there will always be someone ready, willing and able to acquire their practice when the unexpected happens.
“We tell clients to plan, plan, plan, but don’t always do that for ourselves,” he said.
Founded in 1962, Cornerstone Financial Advisors provides individual wealth management and retirement and estate planning services to clients in Idaho Falls and Pocatello, Idaho.