Succession planning

Private equity-backed M&A activity has steadily risen. Owners may do great in a sale, but what about advisors lower in the organization?

Raymond James tapped industry veteran Mark Buchanan to lead a new ESOP advisory group focused on tax-advantaged succession strategies.

Internal succession planning is messier but aligns with a true fiduciary firm's core values, argues Neela Hummel of Abacus Wealth.

As more financial advisors near retirement without clear succession plans, some RIAs are turning to ESOPs and Section 1042 rollovers to exit on their own terms.

As valuations continue to rise across the industry, more firms are using compensation to invest in their top talent and future growth, Succession Resource Group says.

Many advisors haven't yet begun putting together an exit plan. Experts say there are common features and defined timelines that can help make it work.

Advisors know that a transition plan is important, but many fall into the trap of procrastination.

An internal successor, a seller and an acquirer dish out the most common mistakes they say advisory firms must avoid to address the challenge.

Advisors who seek a smooth transition should take a hard look at their data and tech stack before any succession planning begins, experts say.

Many owners of privately held businesses are planning to sell at least part of their interests in the firm in the next five to 10 years, a Raymond James study found.

Founders Elissa Buie and Dave Yeske are leaving a legacy in the profession and at the firm under three successors taking over in 2026.

Separate from any transactions involved with succession, financial advisors who want to retire face challenges that make exiting the business difficult.

Preparation is everything: If clients are aware of the transition well in advance, experts say the risk is pretty low they'll leave the firm.

Savant Wealth Management, Moneta Group Investment Advisors and EP Wealth Advisors lead a group of fee-only firms with headcounts well above their peers.

Experts say RIA owners often resist making themselves replaceable. But they'll have to choose between an internal or external deal someday.

The implications to taxes, hiring and the very legacy of a financial advisor's career demand much more formal documentation than most RIAs have undertaken, experts say.

Less than a third of firms have a formal, documented plan in place, according to this month's Financial Advisor Confidence Outlook survey. Experts say this is a dangerous state of affairs.

Minority transactions are increasingly appealing to sellers who are wary of giving up the full control of their firms. But experts say the deals do come with strings.

Deal structure, transition plans and dog and pony shows represent only a few of the thorny difficulties involved with branching into an acquisition strategy, experts say.

Resources and personal connections offer significant advantages. But financial advisors and other experts say they only get new RIAs part of the way.