When Robert Lipman decided to transition away from his role as managing director of leading Sydney-based wealth management firm, Robert Lipman & Associates, he had an obvious choice.
The new managing director would be his long-time associate and Lipman director, Paul Burgon. Lipman would be elevated to executive chairman and remain chair of the investment committee; he would gradually transition to a non-executive chairman role by 2020.
The choice was simple, but the succession was still planned in meticulous detail to ensure that clients were transferred smoothly to the new regime.
“We wanted to ensure a seamless transition for each client, with improved service level, and no change in the quality of strategic advice or portfolio management,” Lipman says.
“We also wanted to ensure our value system is clearly defined and sustainable going forward.”
Lipman started the business as the wealth advisory arm of Investec Bank (Australia) in 2000, and he and Burgon bought the business in 2011. The company advises more than 150 of Australia’s wealthiest individuals and families with over $700 million in funds under advice.
Three years in the making
The succession planning began some three years ago, but the process was ramped up in the past year.
Burgon says that a year after they bought the business from Investec they experienced significant growth.
“We realised that if we were going to remain sustainable as a business, we needed a sound succession plan that would accommodate that growth into the future,” he says.
The succession didn’t involve a change of shareholdings, but the company had a clear goal for the succession: they wanted to ensure all stakeholders including clients, staff and shareholders “were well looked after” in the process.
The first plank in the strategy was a rebranding and name change to Lipman Burgon & Partners to be implemented early next year, to reflect Burgon’s greater role and the depth of the company’s team, which Burgon says provides a key platform for growth.
The second part was a client and business partner communication strategy. “It’s absolutely essential you communicate transparently and openly about changes taking place to the business,” Burgon says.
Outside advice
The company received outside advice from the likes of marketing and communications agencies to ensure their communications got the correct message across to clients and business partners.
“It’s important to get professional advice,” Burgon says.
The communications material informing clients of the succession included a Q&A on topics such as how access to information and people would be retained, how the succession would affect the client, and whether pricing would change.
The third plank of the succession-planning strategy was a mentoring and training program. Lipman says the company’s values of honesty, accountability and tenacity are a key area of differentiation for the firm.
“We wanted to ensure the ethos of the firm remains intact,” he says.
Staff were trained in the values and principles of the firm; there were in-house training modules on strategy and investment, and staff are also undertaking formal training, including CFP certification
Burgon says the key to successful successions is to plan early and to get professional advice.
Lipman says the feedback from clients has been positive.
“It’s been really good,” he says.
“Clients are now properly informed and have sent in messages of congratulations saying we have their full support and that they look forward to working with us.”
Note: This article was edited on 25/11/15 to correct the name of Lipman Burgon & Partners