Viewpoints | Advyzon

Can your tech stack help with succession planning?

Written by Advyzon Team

As a one-man operation, Ricardo Reinking understands the importance of succession planning and protecting the future well-being of his clients. He also knows how important efficiency and organization are to his operations right now. Doing both well comes down, largely, to technology.

Reinking is the President of Reinking Financial Consulting, a Minnesota-based planning firm that serves a global, high-end clientele. He selected Advyzon because Quantum makes it easy for him to trade and rebalance accounts, even when those accounts include more complex products, such as structured notes.

But another advantage became apparent: Advyzon could help enhance succession planning and protect his business.

From growth to succession: Organization matters

As a solopreneur, Reinking sees value in having a centralized hub of client information. Not only does Advyzon sync client data to investment management, billing, and reporting, it also paves the way for whatever’s next.

If he were to bring on a new advisor, his clients’ information is consolidated on one platform, making it easy to find. The same is true if Reinking were to sell his firm. With Advyzon, a successor would be able to seamlessly take the reins on his book of business. It’s a big value add for prospective buyers.

Not only that, if a buyer approaches Reinking with questions about his firms’ valuation, structure, client base…or any of the myriad questions buyers home in on, he can answer them using Advyzon’s technology.

It’s also a selling point for Reinking Financial Consulting clients—they can be confident their information will be securely transferred to a new team or advisor if Reinking were to retire…or if something were to happen to him.

“If I were in a car accident tomorrow, it’s a very important value that I can leave behind—a continuity plan for my clients,” Reinking explains. “They love the idea that I already have a person in mind who could keep the same strategy going for them.”

Better serve a niche audience

Reinking serves individuals or couples with at least a million dollars in investible assets. His clients tend to be well-educated and are either approaching or in retirement. They also tend to have a global footprint; in fact, Reinking specializes in working with dual citizens, particularly Mexican Americans.

While niche advice can seem challenging from a success standpoint, technology can help make new audiences like Reinking’s more accessible for prospective buyers.

For instance, Reinking is quick to point out that portfolio management is seamless even when clients have a global footprint: “It’s easy for me to do a model portfolio that precisely fits my Mexican clients. I don’t want to double up their exposure to emerging markets, for example.”

Already having these systems in place will make it easy for future advisors to filter through Reinking’s client profiles and identify their unique needs quickly.

Data that tells a story

Reinking’s client base is diverse. Based in Minnesota, he works with clients across the globe, including high net worth families, some of whom have assets outside of the United States. Being able to quickly see detailed client information is essential to running his business. If a buyer or successor isn’t as familiar with the needs of Reinking’s Canadian or Mexican clients, his database automatically converts the value of all assets into dollars.

Reinking explains, “My [global clients] may have some older accounts that we want to aggregate. I can value them in U.S. dollars, and I don’t have the problem of mixing currencies.”

This makes it a hassle-free experience for the advisor, and clients are still able to receive personalized advice. It’s this attention to service that allows Reinking to build the kind of firm that clients want to be a part of.

And when it comes time to sell, these same systems have the potential to entice buyers. All a new advisor or firm would need is access to Reinking Financial Consultant’s Customer Relationship Management (CRM). From there, a successor would see current asset allocation, client history, notes about the client, tolerance bands, and more.

Reinking is adamant that he’s nowhere near ready to leave his job behind just yet. He’s passionate about helping his clients experience financial freedom, and he looks forward to working with them for many years to come.

But he also knows that things change, and accidents happen. As a business owner, you need to prepare your business for the “what ifs.” By leveraging tools like Advyzon, he’s put his firm and his clients in a position where they can transition seamlessly to a new advisor, no matter the circumstances.

“Because I have all of the information of all of my clients in one place, [future firms] can see their history and everything,” he summarizes.

Should the time eventually come for Reinking to hang up his hat for good, he knows what an acquiring firm or successor will be looking for. With Advyzon, he can easily, “speak to how much assets under management I have, the age of my clients, and…about all aspects of my firm because it’s gathered in one spot.”

Even if you aren’t crossing the finish line anytime soon, there are ways every advisory firm can leverage technology to better prepare for their eventual succession. Advyzon helps advisors deliver an exceptional client experience while automating and streamlining their CRM, portfolio management, reporting, and more.

Schedule a consultation today to learn more about how Advyzon can play a role in your firm’s succession planning initiatives.

Written by Advyzon Team