SEI has launched a business “pathfinder” program with The Bancorp and FP Transitions, designed to help financial advisors better prepare for their retirement by creating succession plans.

SEI has launched a business “pathfinder” program with The Bancorp and FP Transitions, designed to help financial advisors better prepare for their retirement by creating formal succession plans.

It uses an integrated and customized approach that assists with all phases of the transition planning process, from initial firm evaluation to final transaction execution.

David Grau, senior president and founder of FP Transitions, highlighted that most advisors don’t have a formal exit strategy. “What that means is advisors are missing out on reaping the full rewards of the value they’ve spent years building in their firms,” he said.

According to recent estimates from the Boston, MA-based research firm Cerulli Associates, 43 per cent of financial advisors are either at or approaching retirement. However, 42 per cent of advisors in a recent SEI survey said their biggest challenge was identifying an acquisition partner.

The Business Pathfinder Program uses a five-step process, including: assessing the situation; uncovering the business "roadmap"; determining the preferred strategy; preparing for the transition; and executing the transaction.

Click here to read a feature about the US's aging advisor workforce and succession planning.