You should take the time to craft the perfect exit.
Introduction to the Succession Journey
Knowing when to sell your business may be one of the most challenging decisions of your career. The signs aren’t always obvious – some people plan for years, while others face unexpected circumstances that accelerate their timeline. To make the process seem less daunting, we sought the wisdom of two advisors who sold their businesses to IPC. They share their unique succession journeys, revealing how they knew it was the right time to sell.
Initial Hesitations and Challenges
When Greg Farries first started exploring the idea of selling his business, he didn’t feel ready. “I was struggling to find somebody to replace me, and I’d been looking for probably at least five years. There wasn’t anyone I felt I would entrust my clients and staff to,” he says. He, his business partner and his team were a close-knit group, and they always did things their own way. He couldn’t fathom anyone else taking the reins.
As he got closer to retirement age, however, Farries, a seasoned advisor with IPC, found it more challenging to bring on new clients. His client base was aging, and he couldn’t promise their next-generation family members that he’d be working for another 15 years. “I was in a holding pattern,” he explains.
“Don’t rush into anything that you may regret later. I took two years to sign the deal, and I have zero regrets.”
Overcoming Resistance and Finding Comfort
Still, when IPC approached him and his partner to talk about selling, he resisted. “I knew my staff and my business partner weren’t ready, so I kept throwing up roadblocks,” he recalls. But slowly, over the course of two years of conversation, Farries started to come around. He felt comfortable knowing his staff would be taken care of and that IPC wouldn’t dramatically change the investment philosophy for his clients. He appreciated the flexibility of being able to stay on with the business for two years after the sale to support his staff and clients through the transition. And he felt confident that the experienced advisor IPC found to replace him would maintain the level of service his clients had come to expect. “He’s very competent, knowledgeable, much younger with fresh ideas. So, I felt comfortable when we entered into the deal.”
The Decisive Moment
But the moment that really made him realize it was time to make the sale was when his business partner, Tom, told him it was time. “He said, ‘We can do this.’ He could stay on and keep doing what he was doing, and financially, the numbers got to a place where they worked for both of us. It became real for me when he said it was going to work.”
Letting go wasn’t easy. After 25 years as an advisor, Farries’ clients had become like family. But now, four years post sale, the 64-year-old says he wouldn’t change a thing. He and his wife were able to build their dream house just south of Calgary, and they just returned from a trip to Hawaii. He’s also spending more time with his kids and grandson, who’s almost two.
Advice for Advisors
Farries’ advice for advisors at the beginning of their succession planning is to take your time. “Don’t rush into anything that you may regret later. I took two years to sign the deal, and I have zero regrets.”
When you’re ready to move forward, consider these succession solutions, all of which can help you, your team and your clients through a successful sale.
