Massive regulatory changes and the royal commission fallout are driving many people to leave the financial advice industry, and those who are left are set to face massive additional educational and operational requirements.
But despite such upheaval, Forte Asset Solutions managing director Steve Prendeville told a recent gathering in Sydney that very few business leaders in the sector actually have an exit strategy in place.
Speaking to My Business sister title ifa, Mr Prendeville said: “We know the sales are coming up… yet only 12 per cent of our community actually have a succession plan or an exit plan.
“Those that are successful are the ones that are prepared for this.”
The idea of such professionals not taking their own advice is not new, either. Last year, separate research found that almost four in five accountants have also not planned for their exit out of their business.
Other studies, however, have suggested that the wider community of business owners are somewhat more likely to have looked at their exit, but half still have no succession plan in place.
KPMG’s director of enterprise, Michelle De Lucia, previously told My Business that even transitions from one generation to another within a family business take around five years of planning to get the details and timing right — for both parties within the family, as well as for the ongoing viability of the business.
This apparent lack of preparedness around succession comes despite an estimated 350,000 businesses set to change hands over the next decade, driven in large part by Baby Boomers looking to sell out and retire.