Effective Succession Planning Tips for a Financial Practice

Thompson Financial Group (TFG) has a long history serving clients in the Northern Maine farming community. Started by Potato Farmer Art Thompson in the 1960s, the financial practice has steadily served a growing client base, providing customized financial strategies for individuals, families and businesses.

They’re still thriving today due to consistent commitment to their core values and thoughtful, effective succession planning. Multiple generations of owners have successfully passed the torch of leadership in this financial practice. Read our blog to learn more about the importance of succession planning for financial professionals.

Here are six succession planning tips that have made the TFG team succession planning champions.

1. Successors committed to core values of the financial practice

Unwavering commitment to excellence in serving clients is a hallmark of the culture at Thompson Financial Group. Through each generation of succession in leadership, the owners of TFG ensured their culture of excellence remained strong. In doing so, they ensured the future success of the team and maintained their outstanding reputation in the region.

2. Intentional succession planning

Art knew he could not leave the future of TFG to chance. When his son, Jay Thompson, first joined the practice working with clients, Art began to look down the road to plan for future leadership of the practice. Jay was the first partner brought in as part of his succession plan.

“We put a buy-sell agreement in place, funding it with life insurance,” Jay explained. “Then as new partners came in, we just amended the buy-sell agreement.”

3. Community relationships for leadership talent

The next addition to the leadership succession team was discovered through TFG’s strong community ties. Art and Jay met Brian Hamel through a local development project. Brian impressed them with his strong leadership skills. They discussed having Brian join the TFG team, with a long-range view of eventually making him an owner and successor.

“One of the things that attracted me to this practice was the character Art had, the integrity, the honesty, the hard work and his commitment to his clients,” said Brian. “I told Art that I would continue that commitment. And when it comes time for me to create a succession plan, I will choose someone who also shares that commitment.”

When the time came for the next phase of succession planning, their strong community and client relationships paid off yet again. Bryan Thompson, son of a TFG client, had also worked closely with Brian Hamel in community work. When he was looking to make a career change, he connected with the leaders he had long admired. After working with clients and being mentored by Art for several years, Bryan expressed interest in ownership. Brian Hamel began evaluating and preparing him as a successor.

4. Ameritas practice management team support

“When I was first looking at buying this practice, the first thing Art told me was, ‘You need to talk to Ameritas,’” Bryan Thompson explained. “He connected me with the right leadership at Ameritas to tell the story of what I wanted to do. They were behind me from the help to transfer this financial practice that has been around for many years to me in the next generation.”

Confirming the value of the company was one of those critical steps.

“I also utilized the connection through Ameritas to do a valuation on the company as well, just to have a third party from the outside come in and tell me what the value of this company is, what am I purchasing, and does it line up with what we’ve been doing all along for valuation,” said Bryan.

5. Continuity for clients and the team

The TFG leadership team took great care to ensure that both their team and clients felt comfortable and well cared for throughout the leadership transition.

“I picked up new responsibilities, new leadership roles, and as I worked into those and worked into buying more ownership, I had greater responsibility, but I was already with my team,” said Bryan. “They expected that to happen. It was at the forefront with all our clients, we were talking about it in all our meetings, when we did reviews, and in our newsletters as well. Our clients and staff, they were all very appreciative of the planning and communication we had done.”

6. Vision for future growth

Creating and executing a thoughtful succession plan is critical in ensuring the future of a financial practice. But a strong strategy for growth is also essential. That is what is driving Bryan as TFG serves the next generation of clients.

Under Bryan’s leadership, TFG has now opened a new office in Nashville, Tennessee, in addition to the original flagship location in Presque Isle, Maine. Bryan talks about their future with energy and passion that would make Art proud. “My vision for this practice and taking it into the future is growth — and part of that growth is touching more clients’ lives and bringing more people into this practice to do this great work with clients.”

“I think what’s so fulfilling for me is building a team,” he concludes. “And building a team who cares just as much as I do, and just as much as the past owners do, about our clients. And I think it was very fulfilling for Art seeing everything he built live on into the future.”

Ameritas can help

Need help with succession planning for your own financial practice? Our practice management team works alongside our independent financial professionals to ensure their businesses thrive into the future. Learn more about our offerings to create a succession planning strategy for your financial services business. Or contact our practice management team for personal assistance.