LAS VEGAS, August 31, 2022 – The AmeriFlex Group®, a rapidly growing, advisor-owned hybrid RIA that puts financial planning first, today announced the payout of $8.065 million to nine financial advisors as part of SuccessionFlex™, an innovative program created to mitigate some of the risk and uncertainty around succession planning for financial advisors planning to retire within five years.
Participants in the first SuccessionFlex™ group are mostly in their mid-to-late 60s and looking to take their first steps toward transitioning to the next phase of their professional lives . While the average payout was $896,000, actual amounts varied based on the size of the practice and the amount of cash the advisors were looking to take out of their businesses.
Launched in November 2021, SuccessionFlex™ allows advisors to authorize a succession and continuity agreement that includes an option, before retirement, to sell 30% to 40% of their current revenue stream to The AmeriFlex Group®, with no minority ownership discount. No equity changes hands at the time of the agreement, and the only requirement is that the advisor remains affiliated with AmeriFlex. Advisors can agree to sell to either The AmeriFlex Group®, or to another affiliated partner advisor.
Thomas Goodson, President & CEO of The AmeriFlex Group®, said, “SuccessionFlex™ is working exactly as we envisioned. It gives advisors the financial flexibility and peace of mind they need as they navigate toward retirement and succession. We worked with these nine advisors over the past few months to ensure that we developed unique deals that would allow each to continue growing their businesses and providing exceptional services to their clients.”
Longboat Key, Florida-based Henry Kochan, an AmeriFlex Group® financial advisor with 41 year of industry experience was one of the first participants in SuccessionFlex™. He said, “The AmeriFlex Group® has created a great program for advisors like me who are looking to make a graceful exit from a business they devoted the better part of their lives to building. SuccessionFlex™ allows me to expand my strong relationship with The AmeriFlex Group®, taking it from the back office to the near office. It’s been a true win-win situation for all involved.”
SuccessionFlex™ was created by Mr. Goodson and his senior leadership team in collaboration with strategic advisor Larry Roth, the former Cetera and Advisor Group CEO and Managing Partner of RLR Strategic Partners, a boutique M&A and strategic advisory firm.
“With reports of 40% of the financial advisor population looking to retire over the next 10 years, I believe SuccessionFlex™ is the right program at the right time,” said Mr. Roth. “Exiting the business is a decision that shouldn’t be made in a vacuum, since it has wide-ranging implications for an advisor’s family, staff and clients. We developed SuccessionFlex™ to take some of the uncertainty out of the succession process, relieve much of the burden and allow advisors to start monetizing their practices while still working.”
About The AmeriFlex Group
The AmeriFlex Group® is recognized as The Home for Hybrids® (www.HomeForHybrids.com) – BD/RIA Transitional Wealth Planners™ (financial advisors). The RIA is owned-and-operated by its advisor members and partners. Securities offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. Investment advisory services offered through The AmeriFlex® Group, an Independent Registered Investment Advisor. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. Insurance is offered independent of SPF. 8485 W Sunset Road, Suite 204, Las Vegas, NV 89113
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If you would like more information, please contact Jesse Kurrasch at (702) 987-9732, by email at [email protected] or visit us at www.ameriflex.com.