2009 News Releases

Boston - John Hancock Financial Network (JHFN) today introduced an equity and succession platform to provide its financial representatives with assistance in the valuation, growth and sale of their practices. Called Build4Success, the platform offers comprehensive equity and succession resources, access to a new investment advisory and insurance-based third-party valuation model, planning tools including a step-by-step guide for determining, protecting, growing, and ultimately realizing a businesses value as well as assistance with the financing of transactions.

“Equity and succession planning is a critical component for the future of our industry for both the business owner as well as their clients. Build4Success encourages partnership between incoming representatives and experienced representatives, while retaining and cultivating valuable client relationships. We recognized the importance to our clients, financial reps and the industry to address this challenge and offer a platform that provides opportunities for all parties,” said Peter Gordon, President, JHFN. 

JHFN approached FP Transitions, a leading provider of equity management, valuation and succession planning services, to develop new valuation methodology which considers both investment advisory and insurance-based financial services practices. “Developing a rigorous valuation model for insurance-based business is quite complex,” said Brad Bueermann, Principal, FP   Transitions. “Partnering FP Transition’s succession expertise with JHFN’s insurance knowledge and data has led to what we believe will become the standard.” This new valuation model and support for the transition of a business will be provided to JHFN financial reps through a preferred relationship with FP Transitions.

“When fully adopted, equity and succession management – an iterative, career-long process – improves the quality and length of service provided to clients while increasing business value for practice owners,” said Brian Heapps, CLU, ChFC, Executive Vice President of Sales and Business Development, JHFN. “While equity and succession programs aren’t new, and the methodology for valuing financial advisory practices is widely accepted, what has been missing in our industry – and what we wanted to offer to our reps through Build4Success – is a model for valuing both the investment advisory and the insurance side of a rep’s book of business.”

Valuation is a core component of the Build4Success platform which provides a framework for addressing the four stages of equity and succession management. These stages can be approached in consecutive order, or as needed.

• In Stage 1, Determine Your Business Value, financial reps have access to a third-party valuation for both the investment advisory and insurance components of their practice, including consideration of intangible assets such as deep client relationships.
• In Stage 2, Protect Your Business Value, financial reps focus on developing a short-term continuity arrangement as well as a long-term succession plan. Both components assist with protecting clients and employees as well as laying the groundwork for building long term value in the business.
• In Stage 3, Grow Your Business, financial reps focus on techniques to grow their business and ultimately its equity value. This includes resources to help identify acquisition opportunities as well as assistance with structuring and financing a transaction.
• In Stage 4, Realize Your Business Value, emphasis is placed on helping financial reps with the sale of their business to an existing protégé, family member, or known successor – or potential successors across JHFN’s national network as well as external buyers willing to join the network and purchase a JHFN practice.   Included is support for structuring the deal, which may include financing, as well as assistance with transitioning a practice to a new financial rep.

James Kerley, President, LIMRA Services, Inc., who has closely studied trends in the industry including the Forces of Change study said, “Strong equity and succession programs will be very helpful to the industry because they foster environments in which younger reps are provided access to markets and guidance from mentors.   The Forces of Change research has shown that reps are much more likely to succeed when they are working in a group, collaborative setting. I’d encourage more organizations to develop succession planning programs like Build4Success.”

About John Hancock Financial Network
John Hancock Financial Network is a national network of independent firms with over 1,900 financial professionals across the U.S.  A leader with the stability and scale to offer an innovative business model, John Hancock Financial Network gives entrepreneurial financial professionals the power to effectively build unique businesses, based on their own vision and market opportunity. For more information on John Hancock Financial Network and its national network of independent firms, visit www.jhnetwork.com.

About John Hancock Financial and Manulife
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners.  Funds under management by Manulife Financial and its subsidiaries were Cdn$436.5 billion (US$407.1 billion) as at September 30, 2009.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

Registered Representative/Securities and Investment Advisory Services offered through Signator Investors, Inc., member FINRA, SIPC, a Registered Investment Advisor. 197 Clarendon St., Boston, MA 02116.

JHFNB4SPR 11/09

Contact:
Melissa Berczuk
Phone: (617) 663-4750
E-mail: mberczuk@jhancock.com