A $3 billion advisor team recently engaged me to evaluate their succession and partnership options. Their goal wasn’t simply to find a buyer or successor. It was to create an outcome where every generation on the team could succeed.
A senior advisor wanted to monetize decades of work…
A mid-career partner was focused on continued growth…
A younger advisor wanted a clear path to ownership…
And support staff wanted stability.
In many traditional W-2 and independent firms, succession follows a fairly standardized process. The senior advisor may receive a lower valuation multiple, ordinary income tax treatment instead of capital gains treatment, or both. The next generation may inherit the business, but remain tied to one firm’s succession model with limited flexibility.
Too often, someone has to compromise.
That’s why more multi-generational teams are exploring RIA-based succession and partnership opportunities. It’s not just about higher valuation multiples. It’s about optionality.
Today’s RIA market offers an almost unlimited range of deal structures – from partial sales and phased transitions to minority investments, strategic partnerships, equity participation, and customized succession strategies.
Combined with deeper capital resources, these structures can often accommodate advisors at different stages of their careers while creating better outcomes for the entire team.
After more than three decades of consulting with advisors, I’ve never seen two succession situations that were exactly alike.
The best firms recognize that. They’re willing to be flexible, customize the structure, and work toward an outcome that reflects the unique goals of every advisor and stakeholder involved.