Time Frame: We consider a Succession to have a minimum transition of 12 months, but no longer than 18 months. During that time, we would require you to go through our client segmentation process and identify the top 20% of your clients. This will give us a deeper understanding of how you view your top clients and the current service levels you offer them. Our goal is to replicate your client experience the best we can.

Data Base Requirements: We require all transitions that we are working with to have an electronic CRM. Our preferred CRM is Redtail, but we can work with others if you have them. If you do not have an electronic CRM, we can help you build your database. We feel that having an electronic CRM allows us to properly engage and track your clients effectively.

Communication to Clients: In a Succession, we require letters/emails to go out to the entire book of business within 30 days of signing the agreement. That letter will generally outline your intention to exit over a specified time frame. We will handle the entire letter process, from printing, to mailing, to costs associated with it. We have templates for the letter, or you can write it yourself. During the initial 30 days and before the letter, we would go through the client segmentation process. After the letter is sent, we would then start having the face to face or conference calls with your top two tiers of your newly client segmented book. At the end of your transition time frame, we will have one last letter sent out confirming your departure from the business. 

Initial Valuation: Depending upon the make-up and volume of your book of business, we would start the valuation of your practice at 2 times multiple of recurring income and adjust positively/negatively from there. Due to the nature of the Succession, we are more comfortable with retention, which is why the starting valuation is higher than Acquisitions. Again, this is just the starting place and we do take other factors into consideration that will be discussed once we both determine this is a good fit for our firms. The payout of this Transition is typically over a 3-year period to help mitigate your tax implications. We start to offer Good-Will in this payment, which helps to mitigate your tax implication.