Pressure to scale up and grow continues to increase with many financial planning practices fighting tooth and nail to operate sustainably for the future.
Many practices have struggled to meet their expectations of growth and client profitability over the past few years. This is due to the ongoing legislative upheaval, the increased cost of providing advice, and the distraction and disruption wrought by the global pandemic.
Many practice owners that have gone it alone over the past few years feel exhausted and isolated, and are looking for ways to either generate growth, such as buying small client books, or potentially seeking to merge with like-minded practices, often with the encouragement of their licensee.
It is important to carefully consider the implications of merging your practice, and ensure that at the end of the day, the merge is not only in the best interests of your clients, but also aligns with your core beliefs and the culture of your practice.
Here are five tips to consider if you are thinking about merging your financial planning practice:
Like most big business decisions, merging your practice requires careful consideration and in-depth due diligence to ensure that the decision you make is the best one for you, your clients, and your team. Reach out to those that have been in your shoes before and understand the lessons they learnt through the process. Understand if it is the right next step for you, and back yourself!
Michael Gershkov, national practice manager (VIC), Lifespan Financial Planning
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
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