From full retirement to a hybrid model that helps you grow, learn how IPC can help you build a plan that’s right for you
In the coming years, an estimated $400 billion in client assets is expected to hit the market as a generation of Canadian independent advisors reaches retirement. The question isn’t whether those businesses will change hands – it’s how.
Some owners will select an internal successor, others will strike a peer-to-peer deal, and a growing number of advisors are eyeing strategic buyers, like IPC, that can shorten the payout timeline and shoulder the operational load. If you’re considering this option, here’s what you need to know about how IPC provides expert guidance and tailored solutions to help advisors navigate every step of the succession journey.
A competitive payout on your timeline
Over the past five years, IPC Pinnacle – IPC’s corporate office program – has become one of the leading institutional buyers of advisory businesses, with more than 100 private acquisitions. IPC can deliver payouts more efficiently than the typical peer-to-peer deal, while also de-risking the transaction and letting you decide how much you want to be involved, says John Novachis, Executive Vice President, Advisor Growth and Succession at IPC. “Why wait seven to 10 years to get your money out if you can do it in two from somebody that can actually write a cheque?”
Guidance at every step
When you sell your business through IPC Pinnacle, you’ll be assigned a dedicated transition team that will take the time to talk to you about succession planning well before a sale. They’ll walk through different options, timelines and valuations – even discussing ways to increase the price of your practice before selling.
Your team will put a value on your business, devise tax-efficient ways to get your money out of your business and create client communications about the sale. This streamlined, end-to-end approach turns what can be an overwhelming experience into a seamless and transparent process.
IPC Pinnacle offers three options for succession, allowing you the flexibility to exit on your own timeline. Here’s how they work:
IPC Legacy:
This is the most traditional option and might resonate if you want to fully retire.
- IPC buys your entire book at a competitive and fair price.
- You gradually transition over a two-year period, remaining independent, with minimal disruption to your clients and staff.
- You’ll monetize the value of the business you’ve built with dependable payments and confidently exit into retirement while IPC preserves your legacy.
IPC Growth:
This is the option for you if you’re looking to grow your book without the complexity of running a business.
- You sell your book to IPC at a competitive price, while maintaining your client base.
- You then become an IPC Pinnacle Advisor, delegating the operational burdens of running a business to IPC while you focus on growth and nurturing client relationships.
- Now you’re earning a salary and will receive a share of the profits, a bonus and payment for net-new asset flow from existing and new clients.
IPC Optimizer:
If you want to optimize your book of business and focus on your higher net worth clients, this option is for you.
- Sell your lower-value clients to IPC at a fair and competitive price.
- You remain independent, but you can tap into IPC operational resources, freeing up your time to focus on target clients and growth.
- IPC will work with you to develop a documented succession plan for your eventual retirement.
In every scenario, IPC shoulders the compliance and back-office load while ensuring clients enjoy the same experience they’re used to from you.
“We can’t replace you,” says Novachis, “but we can replace and install a consistent, world-class wealth-management experience.”
Protecting your legacy
A smooth succession process relies on continuity, which means ensuring your staff stay on after a sale. IPC prioritizes retaining your people, including the familiar faces who set appointments, process paperwork and are often the first point of contact when clients feel anxious about their portfolios. “No client wants to hear they’ve been sold, that’s a terrible thing,” Novachis says. “That’s why communication and continuity are so important.”
Maintaining your legacy also means establishing trust and credibility with your clients, not making immediate changes. The IPC Pinnacle program is a collaboration. You work with an advisor who shares your values and supports your client communication throughout your transition. “We offer an open shelf of products that are in our clients’ best interests,” Novachis says, whether it’s continuing to invest in the same products or discussing new options that might be better.
Empowering advisors
The IPC Pinnacle program is focused on helping advisors build better businesses in whatever way is best for them.
Often advisors say that other lenders don’t understand their business. To address this concern, IPC maintains a long-term partnership with a trusted lender that has specialized expertise in the wealth management space. Providing financing options is just one of the ways IPC supports advisors in their succession journeys.
Take the first step
If you’re ready to start thinking about your succession plan, connect with IPC to get a thorough assessment of your business and your plans. "We can help you build your business, maximize value and then exit on your terms,” says Novachis. “Nobody else in Canada can do that.”
Visit whatsstoppingyou.ca to book a call.
