Introduce your successor to clients

“It demonstrates that you’re being thoughtful about it rather than just saying, ‘How do I get out of here?'” Hartman says.

To make the introductions go smoothly, keep these ideas in mind.

> Get the timing right
Ensure that the transition doesn’t appear sudden to clients. The process should begin six to 12 months before your departure, Hartman says. “If you can make it even earlier than that, you can position the whole transition as a merger rather than as a sale, acquisition or retirement — that always has a more positive spin to it.

“View [your succession] as a progression rather than as something that is taking client relationships backwards,” he adds.

Framing the transition as a merger over the course of a few years is the best scenario, says Dan Richards, CEO of Clientinsights in Toronto. “By the time those two or three years have passed and the [new] advisor and your clients have gotten a chance to get to know each other,” Richards says, “[the succession] becomes a non-event.”

> Choose whom to contact
If you have a large book it may not be possible to speak to all of your clients in person, Hartman says. So, first focus on your “A” or high net-worth clients. Start setting up appointments with clients you want to meet with in person. All your other clients will receive some kind of communication, such as a letter.

“Pick up the phone first,” says Richards. “Explain that you’ve made the decision to retire, to make a transition or pursue other interests, but want to make sure your clients are well-served.”

> Reassure clients
Most people worry about change, so you have to explain in the interview how this transition will benefit them, Richards says. “The first thing people worry about is that their service level is going to come down, they are going to be charged more or they are not going to be as well off. So, you’ve got to satisfy them about those issues.”

> Why that advisor?
Explain why you’ve chosen that particular advisor to succeed you. “Talk about not only the credentials they possess,” says Hartman, “but why you think the relationship will make sense. Explain that clients will value not only the advice but the relationship with this person.”

> Explain how the transition will work
Be clear about the new relationship and how the transition will work.

Some advisors reduce their hours and start to work part-time rather than full-time, Hartman says. Others maintain contact as consultants or mentors. “Some just basically hang up their pen and briefcase and go away,” Hartman says.

Make sure your clients are clear about your new role, so they don’t bypass your successor and keep calling you with questions.

> Keep it personal
Ensure all conversations about the transition focus on the client’s individual needs.

“Just as advice is personal, these types of conversations are personal,” says Richards. “You can’t have a template that’s going to apply universally. Tailor it and customize it.”

IE