Apr 25, 2025
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Succession Planning for Financial Advisors: A Legacy Guide
Succession Planning for Financial Advisors: A Legacy Guide
Why Succession Planning Matters Now More Than Ever
Why Succession Planning Matters Now More Than Ever
Succession Planning for Financial Advisors: A Legacy Guide
Why Succession Planning Matters Now More Than Ever
In the financial advisory world, the numbers are clear: more than 40% of advisors are expected to retire in the next decade. That represents trillions in client assets under management (relationships built over decades) that are poised to change hands. For many, this isn’t just about dollars and deals.
It’s more about dignity, legacy, and continuity.
That’s why succession planning for financial advisors has become one of the most mission-critical yet emotionally charged conversations in our industry. At its core, it’s not a transaction. It’s a transition and one that demands trust, clarity, and care.
As one advisor put it:
“You're not just selling a business—you're handing over 30 years of friendships.”
If you're years away from retiring or just starting to think about the next steps, now is the time to get intentional about how your life's work will live on, and who will carry it forward.
Common Barriers to Succession Planning for Financial Advisors
Despite widespread awareness, many financial advisors delay or avoid creating a proper succession plan. And it’s not for lack of logic but more because the emotional and operational hurdles are real, deeply personal, and often misunderstood.
Emotional Resistance: “I’ll Die at My Desk”
Advisors who’ve spent decades in the business often struggle to imagine life beyond their practice. Some say, “I’m just going to fade away,” or “I’ll die at my desk.” These reflect a very serious fear of losing identity, purpose, and control.
The truth is that successful succession planning doesn’t mean walking away. It means designing a transition that aligns with your values, preserves your client relationships, and gives you the freedom to redefine retirement on your terms.
Loyalty to Clients: The Emotional Anchor
For many retiring advisors, their client relationships aren’t just professional but also deeply personal. The idea of handing off multi-decade relationships to a stranger feels unthinkable.
One advisor described it bluntly: “To turn them over to a stranger—it absolutely will not work.”
This fear makes internal succession especially appealing, where potential successors, such as junior advisors or family members, are already embedded in the culture and client base.
But these paths require time, intention, and clear communication to truly succeed.
Confused and Overwhelmed: Where Do I Even Start?
The succession planning process is complex.
Should you sell outright, retain equity, create a phased leadership transition, or groom an internal successor?
For many financial professionals, the sheer volume of choices leads to paralysis. Without trusted resources or guidance through the succession planning process, some do nothing, and that inaction can jeopardize client continuity and long-term value.
Mismatched Timelines: Not Everyone's Clock Ticks the Same
In multi-partner practices, it’s common for one advisor to be ready for retirement planning while others are still focused on growth.
We’ve spoken with firms where a partner in his 70s is eyeing the exit, while his younger colleagues are still years away from letting go. This creates not just friction and indecision but also a trap. The junior partners want to take over, but often don’t have the liquidity to buy out the senior partner at a fair value. So everyone stays stuck. Or worse, the senior partner, who may have the firm’s best book, ends up selling at 50 cents on the dollar simply because the next generation can’t write the check.
Aligning these timelines, and building a continuity plan that works for all stakeholders, is essential to ensure business continuity and a successful succession plan.
The Three Core Motivators for Succession Planning
Behind every successful transition is a deeply personal set of priorities. After hundreds of conversations with financial advisors, three core motivators come up time and time again. These are not just business concerns but are emotional drivers rooted in purpose, legacy, and care.
Client Continuity: Preserving the Promise
For many advisors, the most important outcome of succession planning is ensuring that clients continue to receive the thoughtful, values-driven guidance they’ve come to rely on. If you're a Certified Financial Planner or a registered investment advisor, the relationships you've built are irreplaceable.
The fear?
That a rushed or impersonal handoff will break the bond.
A proper succession planning approach centers client transition as a strategic, not incidental, outcome. It ensures that your clients aren’t just passed along but are instead introduced to someone who shares your philosophy, communication style, and commitment to personal finance outcomes.
Monetizing Decades of Work: Your Legacy Has Value
A succession plan isn’t just about continuity but also about value realization. Most financial professionals have spent decades building something meaningful, and they deserve to see that effort rewarded.
After years of steady wealth management and AUM growth, your practice is likely your largest personal asset. A successful business succession plan considers not only what your firm is worth today, but how to structure the deal in a way that aligns with your retirement goals, estate planning, and tax planning strategies.
Too often, we’ve spoken with advisors who accepted lowball offers, selling themselves short because they lacked the right guidance to truly assess what they’d built. But just as often, we meet advisors with lofty expectations, emotionally tied to a number that doesn’t match market reality. In both cases, the root cause is the same: a lack of objective, data-backed insight into the value of their life’s work.
Maintaining Control: Your Timeline, Your Terms
There’s a big difference between preparing for transition and being pushed into it. Most advisors we speak with aren’t looking for a fire sale. They’re looking for a process that keeps them in control of the timing, the structure, and most importantly, the people involved.
As one advisor put it:
“I don’t want to be forced into a rushed or bad decision.”
And they shouldn't be.
Regardless of whether you're a solo independent financial advisor or part of a multi-partner team, succession planning should be a strategic component of your business planning and not an afterthought triggered by burnout or a health event.
Done right, a succession plan supports you in staying involved, mentoring your potential successor, and even enjoying more freedom while protecting your clients and your life's work.
Timeline Strategies: “Sell and Go” vs. “Sell and Grow”
One of the biggest misconceptions about financial advisor succession planning is that it has to be an all-or-nothing decision. In reality, there are multiple paths, each designed to honor your timeline, personal goals, and vision for your business.
Sell and Go: A Clean Break with Clarity
This is the classic full-exit strategy. A retiring advisor transitions 100% of their practice, typically within a 6 to 24-month window. It’s best suited for those ready to step away entirely and begin the next chapter.
A Sell and Go approach works when there’s a clear plan for client transition, proper succession planning is in place, and the advisor has peace of mind about who’s taking the reins.
It’s a gradual hand-off, but one that still requires thoughtful execution to protect the relationships and value you’ve spent decades building.
Sell and Grow: Monetize Today, Retain Control for Tomorrow
For advisors who want to keep building—but with more flexibility, the Sell and Grow model offers a compelling alternative.
Here’s where things get exciting: you sell 25% to 50% of your practice to a strategic partner and boom, payday. You pull real cash off the table without giving up control. You’re still in the driver’s seat, but now with serious capital to play offense. This structure lets you tap into the operational benefits of scale, such as shared compliance, marketing, and technology, all without sacrificing autonomy and identity.
We recently spoke with a $700M RIA that’s exploring this very model. As they look to scale toward $2B AUM, they anticipate significant overhead: hiring a CFO, hiring back-office support, and expanding their models. A Sell and Grow strategy would allow them to shoulder those costs with a partner, relationships, while focusing on growing their existing client base, and getting in front of net new clients.
Tailoring the Timeline to Your Needs
Regardless of whether you're a financial planner looking to reduce your hours or an independent advisor aiming to unlock value without walking away, these models offer structure, optionality, and empowerment.
The key is to align your transition strategy with your long-term goals, be they financial, personal, or legacy-driven, and to start early enough that you’re making proactive decisions, not reactive ones.
Evaluating Successor Options
There are a few common paths, each with its own strengths and trade-offs.
Internal Succession: Keep It in the Family (or the Firm)
For many advisors, the most intuitive option is grooming a successor from within. That might be a junior advisor, a business partner, or even a family member.
One advisor shared candidly:
One firm we met with in Reno had what looked like a succession plan on paper: a 70-year-old father planning to hand off his $160M practice to his daughter, who just had her first child and had only been in the business since 2019. In his mind, “the plan” was in motion. But the truth? She wasn’t ready. She didn’t want to run the business. She wanted the flexibility and financial upside of ownership, not the day-to-day grind.
When we asked about the transition, the father said it plainly:
“My daughter is the plan.”
But until we stepped in, no one had pointed out the obvious: it wasn’t a plan. It was wishful thinking dressed up as strategy.
Internal succession plans offer the advantage of continuity. The potential successor already knows the culture, the clients, and the operations. And for clients, the transition often feels less disruptive.
But it’s critical that these plans be formalized, not just assumed. That means clear timelines, defined roles, and thoughtful business succession planning to ensure everyone’s aligned and expectations are managed.
Peer-to-Peer Agreements: Gentlemen’s Handshakes, But Risky
Some advisors default to informal agreements with peers, another independent in their network or community who might “step in” if something ever happens, or perhaps merge practices down the road. It’s usually rooted in trust and good intentions. But let’s call it what it is: a handshake deal.
And if we’re being honest, that’s not doing right by your clients. You’ve spent decades stewarding their wealth, guiding them through life’s ups and downs, and the transition plan is… “we’ll see what happens”?
We’ve heard it before: “There’s a guy in town I’ve talked to a few times, but I’m not sure he’s the right fit.” That may help you sleep at night, but it’s not a real plan. And it’s not respectful, not to your clients, not to their families, and not to your own.
If this is the path you’re considering, it’s time to take it from casual conversation to structured planning. Because your clients deserve more than a backup plan made on a bar napkin.
Aggregator Partnerships: Scale with Shared Support
For larger firms or advisors aiming to offload operational burdens while retaining a leadership role, aggregator partnerships offer a compelling option. These partnerships often bring enterprise-level support in areas like compliance, tech integration, marketing, and tax planning, which frees up the advisor to focus on client relationships and strategy.
For a registered investment advisor with $250M+ in AUM, this model can significantly enhance both margins and scale. The advisor might sell a portion of the practice at today’s market multiple while retaining equity and leveraging shared services to grow faster and more efficiently.
Practice Valuation & Multiples
One of the most frequently asked questions in financial advisor succession planning is: “What’s my practice worth?” And while the answer depends on many variables, there are some key trends that shape the valuation conversation.
Understanding the Range
In today’s market, most financial advisory practices sell for 2x to 6x revenue, but the exact multiple depends on a blend of quantitative and qualitative factors.
1. Size of Book
Larger books of business, especially those above $500M in AUM, often command higher multiples. These practices bring scale, predictable revenue, and infrastructure that attract more competitive cash offers, especially from buyers seeking turnkey opportunities in the financial services space.
2. Growth Potential
Buyers don’t just pay for what your practice is. They also pay for what it could become. That includes organic growth trends, client demographics, tech adoption, and service models. A growing, modernized registered investment advisor with scalable processes is often worth far more than one in maintenance mode.
3. Transition Support (Handshake Period)
If you’re exiting completely or planning a longer glide path, your willingness to support the client transition can significantly impact your valuation. This means that a successful succession is also about retention. Buyers value sellers who commit to staying on for a defined period, which eases the handoff, and personally introduces clients to the new team.
Curious how your own transition plan, or lack of one, might affect what your firm is worth?
Start with our TruValue Report. It’s fast, it’s free, and it’ll show you what your practice might command in today’s market, and how small changes could unlock serious value.
The Value of Preparation
You don’t have to wait until you’re ready to sell to start optimizing for value. In fact, some of the best outcomes we’ve seen come from advisors who start preparing 12 to 36 months in advance.
That might include:
Improving client segmentation and retention
Strengthening relationships with the next generation, especially by opening accounts for the children of your top clients
Streamlining operations or modernizing your tech stack
Formalizing internal succession plans
Developing a business continuity strategy that highlights risk mitigation and protects client trust
Monitoring and managing client concentration, ideally keeping your top three clients below 30% of total AUM to reduce risk for potential buyers
Top Questions Advisors Ask (From Real Conversations)
Every week, we speak with financial advisors across the country, some on the brink of retirement, others just starting to think about their future. No matter where they are in the journey, a few key questions come up time and time again.
“What’s my practice actually worth?”
This is usually the first question, and for good reason. Advisors want a clear, honest assessment of the value they’ve created. But value isn’t just about AUM or revenue. It’s also about client retention, growth potential, profitability, and how prepared your practice is for a seamless transition. That’s why any successful succession plan starts with transparency around valuation.
“What are my options if I don’t want to sell 100%?”
Many advisors aren't ready to walk away completely. They’re looking for phased transitions, partial sales, or opportunities to partner while still retaining leadership. If it’s internal succession, grooming a younger advisor, or forming a strategic alliance, business succession planning should offer optionality, not ultimatums.
“How do I make sure my clients are protected?”
Client continuity is at the heart of every good plan. Advisors want to know that the next person will honor their legacy, uphold their standards, and support clients through a smooth transition. This question often opens the door to exploring internal successor development, thorough client transition strategies, and values-based matching with external partners.
“What if my partners and I are at different life stages?”
We hear this constantly. One partner might be 72 and ready to exit; another is 54 and just hitting their stride. Aligning timelines, equity structures, and succession goals can be tricky, but it’s doable with the right plan. This is where formalized internal succession plans or creative deal structuring can support everyone’s goals without forcing a one-size-fits-all approach.
“How can I get started without committing to anything yet?”
This question is music to our ears because it reflects a thoughtful, responsible mindset. Succession planning doesn’t need to begin with a sale. It can start with a conversation, a valuation report, or a strategic check-in. Building the right foundation early gives you flexibility later, and ensures that when the time is right, you're ready.
How to Get Started (Without a Full Commitment)
You don’t have to know all the answers to begin exploring your options. In fact, the most successful succession plans often start years before any deal is signed.
Here are a few low-pressure ways to get moving.
Start with a Preliminary Valuation
Tools like a TruValue Report provide a clear, data-backed estimate of your practice’s worth, based on your current AUM, revenue mix, client base, and operating margins.
Explore Light-Touch Conversations
Talking with potential buyers or strategic partners doesn’t mean you’re selling tomorrow. These early conversations give you a better sense of the landscape: who’s out there, what you value, and how your firm might fit.
Build a Plan 24–36 Months Out
The best transitions aren’t rushed. Advisors who begin mapping out their succession timeline 2–3 years in advance have more leverage, more options, and a smoother client transition.
This is the kind of business planning that pays off in more ways than one.
This Isn’t About Quitting. It’s About Preparing.
Succession planning isn’t a sign you’re done. It’s a sign you’re thoughtful, strategic, aware of your impact, and ready to protect it.
You’ve built something that matters.
“You deserve to go out with dignity, on your terms.”
Let’s start with a conversation, not a contract.
Ready to see what your future could look like?
Get your free TruValue Report now.
No strings. Just clarity.
Succession Planning for Financial Advisors: A Legacy Guide
Why Succession Planning Matters Now More Than Ever
In the financial advisory world, the numbers are clear: more than 40% of advisors are expected to retire in the next decade. That represents trillions in client assets under management (relationships built over decades) that are poised to change hands. For many, this isn’t just about dollars and deals.
It’s more about dignity, legacy, and continuity.
That’s why succession planning for financial advisors has become one of the most mission-critical yet emotionally charged conversations in our industry. At its core, it’s not a transaction. It’s a transition and one that demands trust, clarity, and care.
As one advisor put it:
“You're not just selling a business—you're handing over 30 years of friendships.”
If you're years away from retiring or just starting to think about the next steps, now is the time to get intentional about how your life's work will live on, and who will carry it forward.
Common Barriers to Succession Planning for Financial Advisors
Despite widespread awareness, many financial advisors delay or avoid creating a proper succession plan. And it’s not for lack of logic but more because the emotional and operational hurdles are real, deeply personal, and often misunderstood.
Emotional Resistance: “I’ll Die at My Desk”
Advisors who’ve spent decades in the business often struggle to imagine life beyond their practice. Some say, “I’m just going to fade away,” or “I’ll die at my desk.” These reflect a very serious fear of losing identity, purpose, and control.
The truth is that successful succession planning doesn’t mean walking away. It means designing a transition that aligns with your values, preserves your client relationships, and gives you the freedom to redefine retirement on your terms.
Loyalty to Clients: The Emotional Anchor
For many retiring advisors, their client relationships aren’t just professional but also deeply personal. The idea of handing off multi-decade relationships to a stranger feels unthinkable.
One advisor described it bluntly: “To turn them over to a stranger—it absolutely will not work.”
This fear makes internal succession especially appealing, where potential successors, such as junior advisors or family members, are already embedded in the culture and client base.
But these paths require time, intention, and clear communication to truly succeed.
Confused and Overwhelmed: Where Do I Even Start?
The succession planning process is complex.
Should you sell outright, retain equity, create a phased leadership transition, or groom an internal successor?
For many financial professionals, the sheer volume of choices leads to paralysis. Without trusted resources or guidance through the succession planning process, some do nothing, and that inaction can jeopardize client continuity and long-term value.
Mismatched Timelines: Not Everyone's Clock Ticks the Same
In multi-partner practices, it’s common for one advisor to be ready for retirement planning while others are still focused on growth.
We’ve spoken with firms where a partner in his 70s is eyeing the exit, while his younger colleagues are still years away from letting go. This creates not just friction and indecision but also a trap. The junior partners want to take over, but often don’t have the liquidity to buy out the senior partner at a fair value. So everyone stays stuck. Or worse, the senior partner, who may have the firm’s best book, ends up selling at 50 cents on the dollar simply because the next generation can’t write the check.
Aligning these timelines, and building a continuity plan that works for all stakeholders, is essential to ensure business continuity and a successful succession plan.
The Three Core Motivators for Succession Planning
Behind every successful transition is a deeply personal set of priorities. After hundreds of conversations with financial advisors, three core motivators come up time and time again. These are not just business concerns but are emotional drivers rooted in purpose, legacy, and care.
Client Continuity: Preserving the Promise
For many advisors, the most important outcome of succession planning is ensuring that clients continue to receive the thoughtful, values-driven guidance they’ve come to rely on. If you're a Certified Financial Planner or a registered investment advisor, the relationships you've built are irreplaceable.
The fear?
That a rushed or impersonal handoff will break the bond.
A proper succession planning approach centers client transition as a strategic, not incidental, outcome. It ensures that your clients aren’t just passed along but are instead introduced to someone who shares your philosophy, communication style, and commitment to personal finance outcomes.
Monetizing Decades of Work: Your Legacy Has Value
A succession plan isn’t just about continuity but also about value realization. Most financial professionals have spent decades building something meaningful, and they deserve to see that effort rewarded.
After years of steady wealth management and AUM growth, your practice is likely your largest personal asset. A successful business succession plan considers not only what your firm is worth today, but how to structure the deal in a way that aligns with your retirement goals, estate planning, and tax planning strategies.
Too often, we’ve spoken with advisors who accepted lowball offers, selling themselves short because they lacked the right guidance to truly assess what they’d built. But just as often, we meet advisors with lofty expectations, emotionally tied to a number that doesn’t match market reality. In both cases, the root cause is the same: a lack of objective, data-backed insight into the value of their life’s work.
Maintaining Control: Your Timeline, Your Terms
There’s a big difference between preparing for transition and being pushed into it. Most advisors we speak with aren’t looking for a fire sale. They’re looking for a process that keeps them in control of the timing, the structure, and most importantly, the people involved.
As one advisor put it:
“I don’t want to be forced into a rushed or bad decision.”
And they shouldn't be.
Regardless of whether you're a solo independent financial advisor or part of a multi-partner team, succession planning should be a strategic component of your business planning and not an afterthought triggered by burnout or a health event.
Done right, a succession plan supports you in staying involved, mentoring your potential successor, and even enjoying more freedom while protecting your clients and your life's work.
Timeline Strategies: “Sell and Go” vs. “Sell and Grow”
One of the biggest misconceptions about financial advisor succession planning is that it has to be an all-or-nothing decision. In reality, there are multiple paths, each designed to honor your timeline, personal goals, and vision for your business.
Sell and Go: A Clean Break with Clarity
This is the classic full-exit strategy. A retiring advisor transitions 100% of their practice, typically within a 6 to 24-month window. It’s best suited for those ready to step away entirely and begin the next chapter.
A Sell and Go approach works when there’s a clear plan for client transition, proper succession planning is in place, and the advisor has peace of mind about who’s taking the reins.
It’s a gradual hand-off, but one that still requires thoughtful execution to protect the relationships and value you’ve spent decades building.
Sell and Grow: Monetize Today, Retain Control for Tomorrow
For advisors who want to keep building—but with more flexibility, the Sell and Grow model offers a compelling alternative.
Here’s where things get exciting: you sell 25% to 50% of your practice to a strategic partner and boom, payday. You pull real cash off the table without giving up control. You’re still in the driver’s seat, but now with serious capital to play offense. This structure lets you tap into the operational benefits of scale, such as shared compliance, marketing, and technology, all without sacrificing autonomy and identity.
We recently spoke with a $700M RIA that’s exploring this very model. As they look to scale toward $2B AUM, they anticipate significant overhead: hiring a CFO, hiring back-office support, and expanding their models. A Sell and Grow strategy would allow them to shoulder those costs with a partner, relationships, while focusing on growing their existing client base, and getting in front of net new clients.
Tailoring the Timeline to Your Needs
Regardless of whether you're a financial planner looking to reduce your hours or an independent advisor aiming to unlock value without walking away, these models offer structure, optionality, and empowerment.
The key is to align your transition strategy with your long-term goals, be they financial, personal, or legacy-driven, and to start early enough that you’re making proactive decisions, not reactive ones.
Evaluating Successor Options
There are a few common paths, each with its own strengths and trade-offs.
Internal Succession: Keep It in the Family (or the Firm)
For many advisors, the most intuitive option is grooming a successor from within. That might be a junior advisor, a business partner, or even a family member.
One advisor shared candidly:
One firm we met with in Reno had what looked like a succession plan on paper: a 70-year-old father planning to hand off his $160M practice to his daughter, who just had her first child and had only been in the business since 2019. In his mind, “the plan” was in motion. But the truth? She wasn’t ready. She didn’t want to run the business. She wanted the flexibility and financial upside of ownership, not the day-to-day grind.
When we asked about the transition, the father said it plainly:
“My daughter is the plan.”
But until we stepped in, no one had pointed out the obvious: it wasn’t a plan. It was wishful thinking dressed up as strategy.
Internal succession plans offer the advantage of continuity. The potential successor already knows the culture, the clients, and the operations. And for clients, the transition often feels less disruptive.
But it’s critical that these plans be formalized, not just assumed. That means clear timelines, defined roles, and thoughtful business succession planning to ensure everyone’s aligned and expectations are managed.
Peer-to-Peer Agreements: Gentlemen’s Handshakes, But Risky
Some advisors default to informal agreements with peers, another independent in their network or community who might “step in” if something ever happens, or perhaps merge practices down the road. It’s usually rooted in trust and good intentions. But let’s call it what it is: a handshake deal.
And if we’re being honest, that’s not doing right by your clients. You’ve spent decades stewarding their wealth, guiding them through life’s ups and downs, and the transition plan is… “we’ll see what happens”?
We’ve heard it before: “There’s a guy in town I’ve talked to a few times, but I’m not sure he’s the right fit.” That may help you sleep at night, but it’s not a real plan. And it’s not respectful, not to your clients, not to their families, and not to your own.
If this is the path you’re considering, it’s time to take it from casual conversation to structured planning. Because your clients deserve more than a backup plan made on a bar napkin.
Aggregator Partnerships: Scale with Shared Support
For larger firms or advisors aiming to offload operational burdens while retaining a leadership role, aggregator partnerships offer a compelling option. These partnerships often bring enterprise-level support in areas like compliance, tech integration, marketing, and tax planning, which frees up the advisor to focus on client relationships and strategy.
For a registered investment advisor with $250M+ in AUM, this model can significantly enhance both margins and scale. The advisor might sell a portion of the practice at today’s market multiple while retaining equity and leveraging shared services to grow faster and more efficiently.
Practice Valuation & Multiples
One of the most frequently asked questions in financial advisor succession planning is: “What’s my practice worth?” And while the answer depends on many variables, there are some key trends that shape the valuation conversation.
Understanding the Range
In today’s market, most financial advisory practices sell for 2x to 6x revenue, but the exact multiple depends on a blend of quantitative and qualitative factors.
1. Size of Book
Larger books of business, especially those above $500M in AUM, often command higher multiples. These practices bring scale, predictable revenue, and infrastructure that attract more competitive cash offers, especially from buyers seeking turnkey opportunities in the financial services space.
2. Growth Potential
Buyers don’t just pay for what your practice is. They also pay for what it could become. That includes organic growth trends, client demographics, tech adoption, and service models. A growing, modernized registered investment advisor with scalable processes is often worth far more than one in maintenance mode.
3. Transition Support (Handshake Period)
If you’re exiting completely or planning a longer glide path, your willingness to support the client transition can significantly impact your valuation. This means that a successful succession is also about retention. Buyers value sellers who commit to staying on for a defined period, which eases the handoff, and personally introduces clients to the new team.
Curious how your own transition plan, or lack of one, might affect what your firm is worth?
Start with our TruValue Report. It’s fast, it’s free, and it’ll show you what your practice might command in today’s market, and how small changes could unlock serious value.
The Value of Preparation
You don’t have to wait until you’re ready to sell to start optimizing for value. In fact, some of the best outcomes we’ve seen come from advisors who start preparing 12 to 36 months in advance.
That might include:
Improving client segmentation and retention
Strengthening relationships with the next generation, especially by opening accounts for the children of your top clients
Streamlining operations or modernizing your tech stack
Formalizing internal succession plans
Developing a business continuity strategy that highlights risk mitigation and protects client trust
Monitoring and managing client concentration, ideally keeping your top three clients below 30% of total AUM to reduce risk for potential buyers
Top Questions Advisors Ask (From Real Conversations)
Every week, we speak with financial advisors across the country, some on the brink of retirement, others just starting to think about their future. No matter where they are in the journey, a few key questions come up time and time again.
“What’s my practice actually worth?”
This is usually the first question, and for good reason. Advisors want a clear, honest assessment of the value they’ve created. But value isn’t just about AUM or revenue. It’s also about client retention, growth potential, profitability, and how prepared your practice is for a seamless transition. That’s why any successful succession plan starts with transparency around valuation.
“What are my options if I don’t want to sell 100%?”
Many advisors aren't ready to walk away completely. They’re looking for phased transitions, partial sales, or opportunities to partner while still retaining leadership. If it’s internal succession, grooming a younger advisor, or forming a strategic alliance, business succession planning should offer optionality, not ultimatums.
“How do I make sure my clients are protected?”
Client continuity is at the heart of every good plan. Advisors want to know that the next person will honor their legacy, uphold their standards, and support clients through a smooth transition. This question often opens the door to exploring internal successor development, thorough client transition strategies, and values-based matching with external partners.
“What if my partners and I are at different life stages?”
We hear this constantly. One partner might be 72 and ready to exit; another is 54 and just hitting their stride. Aligning timelines, equity structures, and succession goals can be tricky, but it’s doable with the right plan. This is where formalized internal succession plans or creative deal structuring can support everyone’s goals without forcing a one-size-fits-all approach.
“How can I get started without committing to anything yet?”
This question is music to our ears because it reflects a thoughtful, responsible mindset. Succession planning doesn’t need to begin with a sale. It can start with a conversation, a valuation report, or a strategic check-in. Building the right foundation early gives you flexibility later, and ensures that when the time is right, you're ready.
How to Get Started (Without a Full Commitment)
You don’t have to know all the answers to begin exploring your options. In fact, the most successful succession plans often start years before any deal is signed.
Here are a few low-pressure ways to get moving.
Start with a Preliminary Valuation
Tools like a TruValue Report provide a clear, data-backed estimate of your practice’s worth, based on your current AUM, revenue mix, client base, and operating margins.
Explore Light-Touch Conversations
Talking with potential buyers or strategic partners doesn’t mean you’re selling tomorrow. These early conversations give you a better sense of the landscape: who’s out there, what you value, and how your firm might fit.
Build a Plan 24–36 Months Out
The best transitions aren’t rushed. Advisors who begin mapping out their succession timeline 2–3 years in advance have more leverage, more options, and a smoother client transition.
This is the kind of business planning that pays off in more ways than one.
This Isn’t About Quitting. It’s About Preparing.
Succession planning isn’t a sign you’re done. It’s a sign you’re thoughtful, strategic, aware of your impact, and ready to protect it.
You’ve built something that matters.
“You deserve to go out with dignity, on your terms.”
Let’s start with a conversation, not a contract.
Ready to see what your future could look like?
Get your free TruValue Report now.
No strings. Just clarity.
Succession Planning for Financial Advisors: A Legacy Guide
Why Succession Planning Matters Now More Than Ever
In the financial advisory world, the numbers are clear: more than 40% of advisors are expected to retire in the next decade. That represents trillions in client assets under management (relationships built over decades) that are poised to change hands. For many, this isn’t just about dollars and deals.
It’s more about dignity, legacy, and continuity.
That’s why succession planning for financial advisors has become one of the most mission-critical yet emotionally charged conversations in our industry. At its core, it’s not a transaction. It’s a transition and one that demands trust, clarity, and care.
As one advisor put it:
“You're not just selling a business—you're handing over 30 years of friendships.”
If you're years away from retiring or just starting to think about the next steps, now is the time to get intentional about how your life's work will live on, and who will carry it forward.
Common Barriers to Succession Planning for Financial Advisors
Despite widespread awareness, many financial advisors delay or avoid creating a proper succession plan. And it’s not for lack of logic but more because the emotional and operational hurdles are real, deeply personal, and often misunderstood.
Emotional Resistance: “I’ll Die at My Desk”
Advisors who’ve spent decades in the business often struggle to imagine life beyond their practice. Some say, “I’m just going to fade away,” or “I’ll die at my desk.” These reflect a very serious fear of losing identity, purpose, and control.
The truth is that successful succession planning doesn’t mean walking away. It means designing a transition that aligns with your values, preserves your client relationships, and gives you the freedom to redefine retirement on your terms.
Loyalty to Clients: The Emotional Anchor
For many retiring advisors, their client relationships aren’t just professional but also deeply personal. The idea of handing off multi-decade relationships to a stranger feels unthinkable.
One advisor described it bluntly: “To turn them over to a stranger—it absolutely will not work.”
This fear makes internal succession especially appealing, where potential successors, such as junior advisors or family members, are already embedded in the culture and client base.
But these paths require time, intention, and clear communication to truly succeed.
Confused and Overwhelmed: Where Do I Even Start?
The succession planning process is complex.
Should you sell outright, retain equity, create a phased leadership transition, or groom an internal successor?
For many financial professionals, the sheer volume of choices leads to paralysis. Without trusted resources or guidance through the succession planning process, some do nothing, and that inaction can jeopardize client continuity and long-term value.
Mismatched Timelines: Not Everyone's Clock Ticks the Same
In multi-partner practices, it’s common for one advisor to be ready for retirement planning while others are still focused on growth.
We’ve spoken with firms where a partner in his 70s is eyeing the exit, while his younger colleagues are still years away from letting go. This creates not just friction and indecision but also a trap. The junior partners want to take over, but often don’t have the liquidity to buy out the senior partner at a fair value. So everyone stays stuck. Or worse, the senior partner, who may have the firm’s best book, ends up selling at 50 cents on the dollar simply because the next generation can’t write the check.
Aligning these timelines, and building a continuity plan that works for all stakeholders, is essential to ensure business continuity and a successful succession plan.
The Three Core Motivators for Succession Planning
Behind every successful transition is a deeply personal set of priorities. After hundreds of conversations with financial advisors, three core motivators come up time and time again. These are not just business concerns but are emotional drivers rooted in purpose, legacy, and care.
Client Continuity: Preserving the Promise
For many advisors, the most important outcome of succession planning is ensuring that clients continue to receive the thoughtful, values-driven guidance they’ve come to rely on. If you're a Certified Financial Planner or a registered investment advisor, the relationships you've built are irreplaceable.
The fear?
That a rushed or impersonal handoff will break the bond.
A proper succession planning approach centers client transition as a strategic, not incidental, outcome. It ensures that your clients aren’t just passed along but are instead introduced to someone who shares your philosophy, communication style, and commitment to personal finance outcomes.
Monetizing Decades of Work: Your Legacy Has Value
A succession plan isn’t just about continuity but also about value realization. Most financial professionals have spent decades building something meaningful, and they deserve to see that effort rewarded.
After years of steady wealth management and AUM growth, your practice is likely your largest personal asset. A successful business succession plan considers not only what your firm is worth today, but how to structure the deal in a way that aligns with your retirement goals, estate planning, and tax planning strategies.
Too often, we’ve spoken with advisors who accepted lowball offers, selling themselves short because they lacked the right guidance to truly assess what they’d built. But just as often, we meet advisors with lofty expectations, emotionally tied to a number that doesn’t match market reality. In both cases, the root cause is the same: a lack of objective, data-backed insight into the value of their life’s work.
Maintaining Control: Your Timeline, Your Terms
There’s a big difference between preparing for transition and being pushed into it. Most advisors we speak with aren’t looking for a fire sale. They’re looking for a process that keeps them in control of the timing, the structure, and most importantly, the people involved.
As one advisor put it:
“I don’t want to be forced into a rushed or bad decision.”
And they shouldn't be.
Regardless of whether you're a solo independent financial advisor or part of a multi-partner team, succession planning should be a strategic component of your business planning and not an afterthought triggered by burnout or a health event.
Done right, a succession plan supports you in staying involved, mentoring your potential successor, and even enjoying more freedom while protecting your clients and your life's work.
Timeline Strategies: “Sell and Go” vs. “Sell and Grow”
One of the biggest misconceptions about financial advisor succession planning is that it has to be an all-or-nothing decision. In reality, there are multiple paths, each designed to honor your timeline, personal goals, and vision for your business.
Sell and Go: A Clean Break with Clarity
This is the classic full-exit strategy. A retiring advisor transitions 100% of their practice, typically within a 6 to 24-month window. It’s best suited for those ready to step away entirely and begin the next chapter.
A Sell and Go approach works when there’s a clear plan for client transition, proper succession planning is in place, and the advisor has peace of mind about who’s taking the reins.
It’s a gradual hand-off, but one that still requires thoughtful execution to protect the relationships and value you’ve spent decades building.
Sell and Grow: Monetize Today, Retain Control for Tomorrow
For advisors who want to keep building—but with more flexibility, the Sell and Grow model offers a compelling alternative.
Here’s where things get exciting: you sell 25% to 50% of your practice to a strategic partner and boom, payday. You pull real cash off the table without giving up control. You’re still in the driver’s seat, but now with serious capital to play offense. This structure lets you tap into the operational benefits of scale, such as shared compliance, marketing, and technology, all without sacrificing autonomy and identity.
We recently spoke with a $700M RIA that’s exploring this very model. As they look to scale toward $2B AUM, they anticipate significant overhead: hiring a CFO, hiring back-office support, and expanding their models. A Sell and Grow strategy would allow them to shoulder those costs with a partner, relationships, while focusing on growing their existing client base, and getting in front of net new clients.
Tailoring the Timeline to Your Needs
Regardless of whether you're a financial planner looking to reduce your hours or an independent advisor aiming to unlock value without walking away, these models offer structure, optionality, and empowerment.
The key is to align your transition strategy with your long-term goals, be they financial, personal, or legacy-driven, and to start early enough that you’re making proactive decisions, not reactive ones.
Evaluating Successor Options
There are a few common paths, each with its own strengths and trade-offs.
Internal Succession: Keep It in the Family (or the Firm)
For many advisors, the most intuitive option is grooming a successor from within. That might be a junior advisor, a business partner, or even a family member.
One advisor shared candidly:
One firm we met with in Reno had what looked like a succession plan on paper: a 70-year-old father planning to hand off his $160M practice to his daughter, who just had her first child and had only been in the business since 2019. In his mind, “the plan” was in motion. But the truth? She wasn’t ready. She didn’t want to run the business. She wanted the flexibility and financial upside of ownership, not the day-to-day grind.
When we asked about the transition, the father said it plainly:
“My daughter is the plan.”
But until we stepped in, no one had pointed out the obvious: it wasn’t a plan. It was wishful thinking dressed up as strategy.
Internal succession plans offer the advantage of continuity. The potential successor already knows the culture, the clients, and the operations. And for clients, the transition often feels less disruptive.
But it’s critical that these plans be formalized, not just assumed. That means clear timelines, defined roles, and thoughtful business succession planning to ensure everyone’s aligned and expectations are managed.
Peer-to-Peer Agreements: Gentlemen’s Handshakes, But Risky
Some advisors default to informal agreements with peers, another independent in their network or community who might “step in” if something ever happens, or perhaps merge practices down the road. It’s usually rooted in trust and good intentions. But let’s call it what it is: a handshake deal.
And if we’re being honest, that’s not doing right by your clients. You’ve spent decades stewarding their wealth, guiding them through life’s ups and downs, and the transition plan is… “we’ll see what happens”?
We’ve heard it before: “There’s a guy in town I’ve talked to a few times, but I’m not sure he’s the right fit.” That may help you sleep at night, but it’s not a real plan. And it’s not respectful, not to your clients, not to their families, and not to your own.
If this is the path you’re considering, it’s time to take it from casual conversation to structured planning. Because your clients deserve more than a backup plan made on a bar napkin.
Aggregator Partnerships: Scale with Shared Support
For larger firms or advisors aiming to offload operational burdens while retaining a leadership role, aggregator partnerships offer a compelling option. These partnerships often bring enterprise-level support in areas like compliance, tech integration, marketing, and tax planning, which frees up the advisor to focus on client relationships and strategy.
For a registered investment advisor with $250M+ in AUM, this model can significantly enhance both margins and scale. The advisor might sell a portion of the practice at today’s market multiple while retaining equity and leveraging shared services to grow faster and more efficiently.
Practice Valuation & Multiples
One of the most frequently asked questions in financial advisor succession planning is: “What’s my practice worth?” And while the answer depends on many variables, there are some key trends that shape the valuation conversation.
Understanding the Range
In today’s market, most financial advisory practices sell for 2x to 6x revenue, but the exact multiple depends on a blend of quantitative and qualitative factors.
1. Size of Book
Larger books of business, especially those above $500M in AUM, often command higher multiples. These practices bring scale, predictable revenue, and infrastructure that attract more competitive cash offers, especially from buyers seeking turnkey opportunities in the financial services space.
2. Growth Potential
Buyers don’t just pay for what your practice is. They also pay for what it could become. That includes organic growth trends, client demographics, tech adoption, and service models. A growing, modernized registered investment advisor with scalable processes is often worth far more than one in maintenance mode.
3. Transition Support (Handshake Period)
If you’re exiting completely or planning a longer glide path, your willingness to support the client transition can significantly impact your valuation. This means that a successful succession is also about retention. Buyers value sellers who commit to staying on for a defined period, which eases the handoff, and personally introduces clients to the new team.
Curious how your own transition plan, or lack of one, might affect what your firm is worth?
Start with our TruValue Report. It’s fast, it’s free, and it’ll show you what your practice might command in today’s market, and how small changes could unlock serious value.
The Value of Preparation
You don’t have to wait until you’re ready to sell to start optimizing for value. In fact, some of the best outcomes we’ve seen come from advisors who start preparing 12 to 36 months in advance.
That might include:
Improving client segmentation and retention
Strengthening relationships with the next generation, especially by opening accounts for the children of your top clients
Streamlining operations or modernizing your tech stack
Formalizing internal succession plans
Developing a business continuity strategy that highlights risk mitigation and protects client trust
Monitoring and managing client concentration, ideally keeping your top three clients below 30% of total AUM to reduce risk for potential buyers
Top Questions Advisors Ask (From Real Conversations)
Every week, we speak with financial advisors across the country, some on the brink of retirement, others just starting to think about their future. No matter where they are in the journey, a few key questions come up time and time again.
“What’s my practice actually worth?”
This is usually the first question, and for good reason. Advisors want a clear, honest assessment of the value they’ve created. But value isn’t just about AUM or revenue. It’s also about client retention, growth potential, profitability, and how prepared your practice is for a seamless transition. That’s why any successful succession plan starts with transparency around valuation.
“What are my options if I don’t want to sell 100%?”
Many advisors aren't ready to walk away completely. They’re looking for phased transitions, partial sales, or opportunities to partner while still retaining leadership. If it’s internal succession, grooming a younger advisor, or forming a strategic alliance, business succession planning should offer optionality, not ultimatums.
“How do I make sure my clients are protected?”
Client continuity is at the heart of every good plan. Advisors want to know that the next person will honor their legacy, uphold their standards, and support clients through a smooth transition. This question often opens the door to exploring internal successor development, thorough client transition strategies, and values-based matching with external partners.
“What if my partners and I are at different life stages?”
We hear this constantly. One partner might be 72 and ready to exit; another is 54 and just hitting their stride. Aligning timelines, equity structures, and succession goals can be tricky, but it’s doable with the right plan. This is where formalized internal succession plans or creative deal structuring can support everyone’s goals without forcing a one-size-fits-all approach.
“How can I get started without committing to anything yet?”
This question is music to our ears because it reflects a thoughtful, responsible mindset. Succession planning doesn’t need to begin with a sale. It can start with a conversation, a valuation report, or a strategic check-in. Building the right foundation early gives you flexibility later, and ensures that when the time is right, you're ready.
How to Get Started (Without a Full Commitment)
You don’t have to know all the answers to begin exploring your options. In fact, the most successful succession plans often start years before any deal is signed.
Here are a few low-pressure ways to get moving.
Start with a Preliminary Valuation
Tools like a TruValue Report provide a clear, data-backed estimate of your practice’s worth, based on your current AUM, revenue mix, client base, and operating margins.
Explore Light-Touch Conversations
Talking with potential buyers or strategic partners doesn’t mean you’re selling tomorrow. These early conversations give you a better sense of the landscape: who’s out there, what you value, and how your firm might fit.
Build a Plan 24–36 Months Out
The best transitions aren’t rushed. Advisors who begin mapping out their succession timeline 2–3 years in advance have more leverage, more options, and a smoother client transition.
This is the kind of business planning that pays off in more ways than one.
This Isn’t About Quitting. It’s About Preparing.
Succession planning isn’t a sign you’re done. It’s a sign you’re thoughtful, strategic, aware of your impact, and ready to protect it.
You’ve built something that matters.
“You deserve to go out with dignity, on your terms.”
Let’s start with a conversation, not a contract.
Ready to see what your future could look like?
Get your free TruValue Report now.
No strings. Just clarity.
Succession Planning for Financial Advisors: A Legacy Guide
Why Succession Planning Matters Now More Than Ever
In the financial advisory world, the numbers are clear: more than 40% of advisors are expected to retire in the next decade. That represents trillions in client assets under management (relationships built over decades) that are poised to change hands. For many, this isn’t just about dollars and deals.
It’s more about dignity, legacy, and continuity.
That’s why succession planning for financial advisors has become one of the most mission-critical yet emotionally charged conversations in our industry. At its core, it’s not a transaction. It’s a transition and one that demands trust, clarity, and care.
As one advisor put it:
“You're not just selling a business—you're handing over 30 years of friendships.”
If you're years away from retiring or just starting to think about the next steps, now is the time to get intentional about how your life's work will live on, and who will carry it forward.
Common Barriers to Succession Planning for Financial Advisors
Despite widespread awareness, many financial advisors delay or avoid creating a proper succession plan. And it’s not for lack of logic but more because the emotional and operational hurdles are real, deeply personal, and often misunderstood.
Emotional Resistance: “I’ll Die at My Desk”
Advisors who’ve spent decades in the business often struggle to imagine life beyond their practice. Some say, “I’m just going to fade away,” or “I’ll die at my desk.” These reflect a very serious fear of losing identity, purpose, and control.
The truth is that successful succession planning doesn’t mean walking away. It means designing a transition that aligns with your values, preserves your client relationships, and gives you the freedom to redefine retirement on your terms.
Loyalty to Clients: The Emotional Anchor
For many retiring advisors, their client relationships aren’t just professional but also deeply personal. The idea of handing off multi-decade relationships to a stranger feels unthinkable.
One advisor described it bluntly: “To turn them over to a stranger—it absolutely will not work.”
This fear makes internal succession especially appealing, where potential successors, such as junior advisors or family members, are already embedded in the culture and client base.
But these paths require time, intention, and clear communication to truly succeed.
Confused and Overwhelmed: Where Do I Even Start?
The succession planning process is complex.
Should you sell outright, retain equity, create a phased leadership transition, or groom an internal successor?
For many financial professionals, the sheer volume of choices leads to paralysis. Without trusted resources or guidance through the succession planning process, some do nothing, and that inaction can jeopardize client continuity and long-term value.
Mismatched Timelines: Not Everyone's Clock Ticks the Same
In multi-partner practices, it’s common for one advisor to be ready for retirement planning while others are still focused on growth.
We’ve spoken with firms where a partner in his 70s is eyeing the exit, while his younger colleagues are still years away from letting go. This creates not just friction and indecision but also a trap. The junior partners want to take over, but often don’t have the liquidity to buy out the senior partner at a fair value. So everyone stays stuck. Or worse, the senior partner, who may have the firm’s best book, ends up selling at 50 cents on the dollar simply because the next generation can’t write the check.
Aligning these timelines, and building a continuity plan that works for all stakeholders, is essential to ensure business continuity and a successful succession plan.
The Three Core Motivators for Succession Planning
Behind every successful transition is a deeply personal set of priorities. After hundreds of conversations with financial advisors, three core motivators come up time and time again. These are not just business concerns but are emotional drivers rooted in purpose, legacy, and care.
Client Continuity: Preserving the Promise
For many advisors, the most important outcome of succession planning is ensuring that clients continue to receive the thoughtful, values-driven guidance they’ve come to rely on. If you're a Certified Financial Planner or a registered investment advisor, the relationships you've built are irreplaceable.
The fear?
That a rushed or impersonal handoff will break the bond.
A proper succession planning approach centers client transition as a strategic, not incidental, outcome. It ensures that your clients aren’t just passed along but are instead introduced to someone who shares your philosophy, communication style, and commitment to personal finance outcomes.
Monetizing Decades of Work: Your Legacy Has Value
A succession plan isn’t just about continuity but also about value realization. Most financial professionals have spent decades building something meaningful, and they deserve to see that effort rewarded.
After years of steady wealth management and AUM growth, your practice is likely your largest personal asset. A successful business succession plan considers not only what your firm is worth today, but how to structure the deal in a way that aligns with your retirement goals, estate planning, and tax planning strategies.
Too often, we’ve spoken with advisors who accepted lowball offers, selling themselves short because they lacked the right guidance to truly assess what they’d built. But just as often, we meet advisors with lofty expectations, emotionally tied to a number that doesn’t match market reality. In both cases, the root cause is the same: a lack of objective, data-backed insight into the value of their life’s work.
Maintaining Control: Your Timeline, Your Terms
There’s a big difference between preparing for transition and being pushed into it. Most advisors we speak with aren’t looking for a fire sale. They’re looking for a process that keeps them in control of the timing, the structure, and most importantly, the people involved.
As one advisor put it:
“I don’t want to be forced into a rushed or bad decision.”
And they shouldn't be.
Regardless of whether you're a solo independent financial advisor or part of a multi-partner team, succession planning should be a strategic component of your business planning and not an afterthought triggered by burnout or a health event.
Done right, a succession plan supports you in staying involved, mentoring your potential successor, and even enjoying more freedom while protecting your clients and your life's work.
Timeline Strategies: “Sell and Go” vs. “Sell and Grow”
One of the biggest misconceptions about financial advisor succession planning is that it has to be an all-or-nothing decision. In reality, there are multiple paths, each designed to honor your timeline, personal goals, and vision for your business.
Sell and Go: A Clean Break with Clarity
This is the classic full-exit strategy. A retiring advisor transitions 100% of their practice, typically within a 6 to 24-month window. It’s best suited for those ready to step away entirely and begin the next chapter.
A Sell and Go approach works when there’s a clear plan for client transition, proper succession planning is in place, and the advisor has peace of mind about who’s taking the reins.
It’s a gradual hand-off, but one that still requires thoughtful execution to protect the relationships and value you’ve spent decades building.
Sell and Grow: Monetize Today, Retain Control for Tomorrow
For advisors who want to keep building—but with more flexibility, the Sell and Grow model offers a compelling alternative.
Here’s where things get exciting: you sell 25% to 50% of your practice to a strategic partner and boom, payday. You pull real cash off the table without giving up control. You’re still in the driver’s seat, but now with serious capital to play offense. This structure lets you tap into the operational benefits of scale, such as shared compliance, marketing, and technology, all without sacrificing autonomy and identity.
We recently spoke with a $700M RIA that’s exploring this very model. As they look to scale toward $2B AUM, they anticipate significant overhead: hiring a CFO, hiring back-office support, and expanding their models. A Sell and Grow strategy would allow them to shoulder those costs with a partner, relationships, while focusing on growing their existing client base, and getting in front of net new clients.
Tailoring the Timeline to Your Needs
Regardless of whether you're a financial planner looking to reduce your hours or an independent advisor aiming to unlock value without walking away, these models offer structure, optionality, and empowerment.
The key is to align your transition strategy with your long-term goals, be they financial, personal, or legacy-driven, and to start early enough that you’re making proactive decisions, not reactive ones.
Evaluating Successor Options
There are a few common paths, each with its own strengths and trade-offs.
Internal Succession: Keep It in the Family (or the Firm)
For many advisors, the most intuitive option is grooming a successor from within. That might be a junior advisor, a business partner, or even a family member.
One advisor shared candidly:
One firm we met with in Reno had what looked like a succession plan on paper: a 70-year-old father planning to hand off his $160M practice to his daughter, who just had her first child and had only been in the business since 2019. In his mind, “the plan” was in motion. But the truth? She wasn’t ready. She didn’t want to run the business. She wanted the flexibility and financial upside of ownership, not the day-to-day grind.
When we asked about the transition, the father said it plainly:
“My daughter is the plan.”
But until we stepped in, no one had pointed out the obvious: it wasn’t a plan. It was wishful thinking dressed up as strategy.
Internal succession plans offer the advantage of continuity. The potential successor already knows the culture, the clients, and the operations. And for clients, the transition often feels less disruptive.
But it’s critical that these plans be formalized, not just assumed. That means clear timelines, defined roles, and thoughtful business succession planning to ensure everyone’s aligned and expectations are managed.
Peer-to-Peer Agreements: Gentlemen’s Handshakes, But Risky
Some advisors default to informal agreements with peers, another independent in their network or community who might “step in” if something ever happens, or perhaps merge practices down the road. It’s usually rooted in trust and good intentions. But let’s call it what it is: a handshake deal.
And if we’re being honest, that’s not doing right by your clients. You’ve spent decades stewarding their wealth, guiding them through life’s ups and downs, and the transition plan is… “we’ll see what happens”?
We’ve heard it before: “There’s a guy in town I’ve talked to a few times, but I’m not sure he’s the right fit.” That may help you sleep at night, but it’s not a real plan. And it’s not respectful, not to your clients, not to their families, and not to your own.
If this is the path you’re considering, it’s time to take it from casual conversation to structured planning. Because your clients deserve more than a backup plan made on a bar napkin.
Aggregator Partnerships: Scale with Shared Support
For larger firms or advisors aiming to offload operational burdens while retaining a leadership role, aggregator partnerships offer a compelling option. These partnerships often bring enterprise-level support in areas like compliance, tech integration, marketing, and tax planning, which frees up the advisor to focus on client relationships and strategy.
For a registered investment advisor with $250M+ in AUM, this model can significantly enhance both margins and scale. The advisor might sell a portion of the practice at today’s market multiple while retaining equity and leveraging shared services to grow faster and more efficiently.
Practice Valuation & Multiples
One of the most frequently asked questions in financial advisor succession planning is: “What’s my practice worth?” And while the answer depends on many variables, there are some key trends that shape the valuation conversation.
Understanding the Range
In today’s market, most financial advisory practices sell for 2x to 6x revenue, but the exact multiple depends on a blend of quantitative and qualitative factors.
1. Size of Book
Larger books of business, especially those above $500M in AUM, often command higher multiples. These practices bring scale, predictable revenue, and infrastructure that attract more competitive cash offers, especially from buyers seeking turnkey opportunities in the financial services space.
2. Growth Potential
Buyers don’t just pay for what your practice is. They also pay for what it could become. That includes organic growth trends, client demographics, tech adoption, and service models. A growing, modernized registered investment advisor with scalable processes is often worth far more than one in maintenance mode.
3. Transition Support (Handshake Period)
If you’re exiting completely or planning a longer glide path, your willingness to support the client transition can significantly impact your valuation. This means that a successful succession is also about retention. Buyers value sellers who commit to staying on for a defined period, which eases the handoff, and personally introduces clients to the new team.
Curious how your own transition plan, or lack of one, might affect what your firm is worth?
Start with our TruValue Report. It’s fast, it’s free, and it’ll show you what your practice might command in today’s market, and how small changes could unlock serious value.
The Value of Preparation
You don’t have to wait until you’re ready to sell to start optimizing for value. In fact, some of the best outcomes we’ve seen come from advisors who start preparing 12 to 36 months in advance.
That might include:
Improving client segmentation and retention
Strengthening relationships with the next generation, especially by opening accounts for the children of your top clients
Streamlining operations or modernizing your tech stack
Formalizing internal succession plans
Developing a business continuity strategy that highlights risk mitigation and protects client trust
Monitoring and managing client concentration, ideally keeping your top three clients below 30% of total AUM to reduce risk for potential buyers
Top Questions Advisors Ask (From Real Conversations)
Every week, we speak with financial advisors across the country, some on the brink of retirement, others just starting to think about their future. No matter where they are in the journey, a few key questions come up time and time again.
“What’s my practice actually worth?”
This is usually the first question, and for good reason. Advisors want a clear, honest assessment of the value they’ve created. But value isn’t just about AUM or revenue. It’s also about client retention, growth potential, profitability, and how prepared your practice is for a seamless transition. That’s why any successful succession plan starts with transparency around valuation.
“What are my options if I don’t want to sell 100%?”
Many advisors aren't ready to walk away completely. They’re looking for phased transitions, partial sales, or opportunities to partner while still retaining leadership. If it’s internal succession, grooming a younger advisor, or forming a strategic alliance, business succession planning should offer optionality, not ultimatums.
“How do I make sure my clients are protected?”
Client continuity is at the heart of every good plan. Advisors want to know that the next person will honor their legacy, uphold their standards, and support clients through a smooth transition. This question often opens the door to exploring internal successor development, thorough client transition strategies, and values-based matching with external partners.
“What if my partners and I are at different life stages?”
We hear this constantly. One partner might be 72 and ready to exit; another is 54 and just hitting their stride. Aligning timelines, equity structures, and succession goals can be tricky, but it’s doable with the right plan. This is where formalized internal succession plans or creative deal structuring can support everyone’s goals without forcing a one-size-fits-all approach.
“How can I get started without committing to anything yet?”
This question is music to our ears because it reflects a thoughtful, responsible mindset. Succession planning doesn’t need to begin with a sale. It can start with a conversation, a valuation report, or a strategic check-in. Building the right foundation early gives you flexibility later, and ensures that when the time is right, you're ready.
How to Get Started (Without a Full Commitment)
You don’t have to know all the answers to begin exploring your options. In fact, the most successful succession plans often start years before any deal is signed.
Here are a few low-pressure ways to get moving.
Start with a Preliminary Valuation
Tools like a TruValue Report provide a clear, data-backed estimate of your practice’s worth, based on your current AUM, revenue mix, client base, and operating margins.
Explore Light-Touch Conversations
Talking with potential buyers or strategic partners doesn’t mean you’re selling tomorrow. These early conversations give you a better sense of the landscape: who’s out there, what you value, and how your firm might fit.
Build a Plan 24–36 Months Out
The best transitions aren’t rushed. Advisors who begin mapping out their succession timeline 2–3 years in advance have more leverage, more options, and a smoother client transition.
This is the kind of business planning that pays off in more ways than one.
This Isn’t About Quitting. It’s About Preparing.
Succession planning isn’t a sign you’re done. It’s a sign you’re thoughtful, strategic, aware of your impact, and ready to protect it.
You’ve built something that matters.
“You deserve to go out with dignity, on your terms.”
Let’s start with a conversation, not a contract.
Ready to see what your future could look like?
Get your free TruValue Report now.
No strings. Just clarity.
© 2025 buyAUM. All rights reserved.
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Helping financial advisors build their succession plans & sell their practices
Meet with us
Email us with questions
Helping financial advisors build their succession plans & sell their practices
Meet with us
Email us with questions
© 2025 buyAUM. All rights reserved.