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Succession Planning:
You Have Options

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Dr. Maria Lizak
Alex Stojanoff
Melody Jackson
Randy McCord
Mark Ferland

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650 10085
Financial Advisor’s Lifeline
21
Cindy Asad Jeff Rod Nathan
30 40 50

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I have lots of time. . .
. . . to come up with a plan.

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MYTH
Succession Planning means retiring and since I
am not ready to retire anytime soon, I don’t
need to begin any Succession Planning.

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Every Advisor Will Exit One Day. . .
Cindy Asad Jeff Rod Nathan
Voluntary:
Career change
Retirement
Involuntary:
Disability
Death

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Succession Planning is a Process
Succession Planning starts well before
retirement.

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Succession Planning is a Process

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Question:
Do you want to retire or keep working?
What would you do if you retired?

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Question:
How active do you want to be?

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Question:
Will you have the income you desire?

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Question:
Will your clients be well served by your
choice?

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What kind of Legacy
will you leave?

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Option #1
Sell Your Practice

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Sale
Recommended for those who want to:
• Make an exit from the industry
• Receive cash

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How much is it worth?
My practice is a
valuable asset. I
should be able to get
a good price for it.

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Reality
Most Advisors over-estimate what their business
is worth to others. Your practice is much less
valuable to others than you think it is.

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Why Would I Sell?
Compensation:
• ~1-3x Annual Revenue on Existing
Clients
• Paid out immediately OR over 2-5
years

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What if you die?
Not all advisors own their book of business.

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Why Would I Sell?
Why would I sell my business when I am
making such a great income?

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Reality
Your business is worth
less every single year!

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Reality
None of us knows how much time
we have left

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My Spouse Could Sell…
Most spouses are not in a position to take
charge of selling it.
Does your spouse understand your business?

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Do you REALLY own it?
What does your MGA do with orphan clients?

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What about your clients?
Will they revert to a house account?
Who will look after them?

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Forced Sale
Estate sales typically result in the buyer paying
less than half what they would have if the
Advisor had still been alive to help manage the
transition of clients.

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Sale
National Best will provide…
• Comprehensive Evaluation of your
book of business
• Qualified, well-trained Advisors
interested in purchasing Your Book of
Business
• Financing for advisors who want to
purchase a book

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You Have Options
There are other
options that have
the potential to
preserve and
maximize the value
of your business.

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Option #2
Gradual Transition

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Gradual Transition
Recommended for those who want to:
• Prolong their retirement income
• Maximize the value of your business

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Gradual Transition
Recommended for those who want to:
• Gradually Transition out of the Industry
• Take their time to find the right Advisor
to look after their clients

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Gradual Transition
National Best will provide…
• Qualified, well-trained Advisors
interested in working with you to
transition your book
• nbTechnology Suite to get your
business and client records in shape

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Gradual Transition
Compensation
• Ability to receive compensation even if
you no longer maintain your Insurance
license
• Your family continues to receive
revenue even after you pass away

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Gradual Transition
How much time do you
want to spend training
someone new?

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How active do you want to be?
We recommend a 3 generation approach

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Gradual Transition
Compensation (%)
0
20
40
60
80
100
120
Fully Active
Transitioning Advisor
nbLegacy Advisor

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Gradual Transition
Compensation (%)
0
20
40
60
80
100
120
140
160
Fully Active Transfer
Responsibility
New Business
from Existing
Clients
Referrals from
Existing
Clients
Transitioning Advisor
Family continues to receive revenue
+ +

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Option #3
Build a Legacy

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Build a Legacy
Recommended for those who want to:
• Grow their business before they retire
• Maximize their retirement income
• Mentor new Advisors coming into the
Insurance Industry

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nbLegacy Program
Together,
we are
the
Best!

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Working with a team
Working with a team of professionals you could:
– better serve your clients
– expand your practice
– benefit from multiple
streams of revenue

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Provide More Solutions

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Working with a Team
– Work with a trusted network of financial
professionals
– Our nbAcademy graduates are trained to
• Get your business and client records in good shape
• Put systems in place to deal with marketing,
processing business, and client care
• Social Media tools

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nbLegacy Program
Compensation
• Supervisory and Agency Overrides on
Advisors you are mentoring
• Eligible for our Production, Recruiting &
Training Bonuses
• Ability to contribute to our
nbRetirement and nb$miles Incentive
Programs

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nbLegacy Program
Compensation
• Ability to receive compensation even if
you no longer maintain your Insurance
license
• Your family continues to receive
revenue even after you pass away

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There is strength in numbers!
You’re Not Alone

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TOGETHER,
we are the
BEST!

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You Have Options

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Visit www.nbAdvantage.com

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Questions?