Cetera has enhanced its succession and continuity planning offering to advisors with the launch of its new Legacy Builder Program. Legacy Builder helps participating advisors plan for the continuity of their business should they experience an unforeseen and often tragic exit from their practice. Cetera will ensure the purchase of the practice by finding a qualified buyer or financing a portion of the transaction with an existing advisor within its network and will assure the purchase of an advisor’s practice if another Cetera-affiliated advisor cannot be identified.
The Legacy Builder Program helps monetize the value of an advisor’s life’s work and provides financial stability through the client transition process to the next generation of owners. Core to the offering is an online valuation platform provided by Truelytics, which helps to assess the value of the practice as well as provide clear and actionable ways in which to optimize firm value.
“Having facilitated over 250 advisor practice acquisitions since 2015, Cetera has observed that the value of an advisory practice decreases by as much as 75% within the first 60 days of an unplanned exit, if no executable continuity plan is in place,” said Richard Whitworth, Head of Business Consulting for Cetera. He added, “From early-onset dementia to medical emergencies to motor vehicle accidents and more, we’ve seen it all. While many advisors have personal and/or key man insurance in place to provide financial resources for a family upon death, Legacy Builder focuses on assisting advisors in protecting some of the value of the business during an ownership transition process.”
The Legacy Builder Program is proprietary to and was built by Cetera in collaboration with advisors on its Advisor Engagement Council and Enterprise Action Committees, as well as continuity and succession experts in financial services and the business community.
Robert G. Federici, Esq., Managing Director at Hudson Wealth Management, was part of the Enterprise Action Committee which aided in program development. As a corporate attorney for over 30 years and a financial advisor for the last 14 years, a key focus of his practice is consulting with advisors specifically on the criticality of continuity and succession planning. He said, “I truly believe Cetera has made real strides in raising advisor awareness of the issues related to legacy planning so that a financial advisor’s business is positioned to live on long after they do.”
About Cetera Financial Group®
Cetera Financial Group ("Cetera") is a leading network of independent firms empowering the delivery of professional financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading service provider to the investment programs of banks and credit unions.
Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations. Advisor support resources offered through Cetera include award-winning wealth management and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology. For more information, visit cetera.com.
"Cetera Financial Group" refers to the network of independent retail firms encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Investment Services (marketed as Cetera Financial Institutions), Cetera Financial Specialists, First Allied Securities and Summit Brokerage Services. All firms are members FINRA / SIPC.
Cetera has enhanced its succession and continuity planning offering to advisors with the launch of its new Legacy Builder Program. Legacy Builder helps participating advisors plan for the...
Want more insights like this, sent straight to your inbox?
Subscribe to email updates from Cetera and be well informed about what’s happening within the market and the financial services industry overall.