Are you equipped to develop succession/continuity plans for your financial practice?

FAQ for Succession and Continuity Planning

As a financial professional, you want to find the ideal partner to help your clients protect their businesses and ensure a bright future for themselves and future generations. That includes developing a continuity or succession plan. One way to do that may be to form partnerships with organizations that can provide more dynamic platforms and solutions than you could provide as a financial professional.

Why financial professionals like you should have business valuations for the financial practice who want to develop a continuity or succession plan. 

No doubt,you have questions about business evaluations. We’ve put together this Q&A below to help.


Q: Why is business valuation so crucial for your practice?

Answer: A business valuation establishes the fair market value for the transferor and successor(s) when developing a legally enforceable agreement. It’s a starting point from which to begin negotiations and ultimately reach the financial terms of a contract or buyout.


Q: What factors influence business valuations?

Answer: Three primary factors influence valuations: 1) Transition risk; 2) Cash flow quality & reliability; and 3)market demands. Valuators will look at specific factors like tenure of the practice & clients, revenue/client growth, client demographics, marketplace demands, and business systems/technology within these categories.


Q: What information do I need to perform a valuation?

Answer: Information for business valuations can stem from many sources, including production reports, expenses,and client data that can usually be pulled from company CRM systems.


Q: What if you are not planning to retire yet?

Answer: Even if you are years away from retirement, valuation can help establish a baseline value of your business. Knowing a business’s worth allows the you to focus on value drivers like recurring revenue and come up with solutions to help solve structural or mechanical challenges. 


Q: Why partner with Fortis Lux?

Answer: Fortis Lux Financial was created to meet the needs of financial professionals and their premier clients. We provide ultimate flexibility, operating as an independent organization with an open architecture of products and services. We can work with you to develop dynamic business, financial growth, wealth management, and succession strategies for your clients. 


Our acquisition strategy focuses on: 

•      Finding a right successor(s)

•      Solving structural challenges

•      Solving mechanical challenges 

•      Helping you negotiate price & terms, including payment structure

•      Strategies to alleviate tax burdens


Do you have more questions? Contact us to schedule a conversation. Together, we can help you determine the best way to service your clients’ succession and goals.

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Fortis Lux Financial does not provide qualified business valuations. For a qualified or certified business valuation, consult a properly credentialed appraiser. This information is for educational purposes only. This is not intended to provide and cannot be relied upon as, legal or tax advice. We suggest that you consult with your own legal and tax professional as part of this process. Any legal agreements entered into with other financial professionals are soley between you and those individuals.