NFP Advisor Services has unveiled NFP Succession Planning, a transition readiness program focused on the components of a buy or sell opportunity, for its advisors.

NFP Advisor Services has unveiled NFP Succession Planning, a transition readiness program focused on the components of a buy or sell opportunity, for its advisors.

The news comes during a time of heightened awareness about the issue of an aging advisor workforce in the wealth management industry, as the US Baby Boomer cohort edges closer to retirement.  

“Succession planning is of critical importance in the area of wealth management. Studies show that 1 in 10 financial advisors is over 60 years old, and M&A consultants suggest that it is best practice for owners to begin preparing for succession up to 10 years before any anticipated transition, yet most advisors haven't even started,” said James Poer, president of NFP Advisor Services.

Meanwhile, a report by Aite Group last year showed that almost 70 per cent of advisory practice owners believe a successful succession strategy will take five years or less to implement - but this time-frame should span 10 years in order to maximize practice value.