Recently, I spoke with a $150 million RIA owner preparing for a succession transaction. He told me he had been approached by several “investment bankers” and online marketplaces offering to help sell his practice.
After learning about a 10% fee and the contract terms, his response was immediate: “No way. That seems like highway robbery.”
The fee got his attention. The contract stopped him in his tracks.
What bothered him most were the onerous provisions. In his view, the agreement effectively made him captive for two years. He couldn’t engage with other buyers or partners, and if he completed a transaction during that period (even one he sourced himself) he could still owe the broker a fee.
And honestly, I hear versions of this all the time now.
“There’s no way I’m signing a two-year contract just to explore my options.”
“Why would I pay someone 10% to sell what I’ve spent decades building?”
“Why are they getting paid on both sides of the transaction?”
As advisor M&A continues to evolve, a new class of middlemen has emerged. Many are positioning themselves as gatekeepers to buyers and opportunities while charging advisors significant fees for access.
This isn’t just another business decision. For many advisors, it’s the largest financial transaction of their career and the culmination of decades spent building relationships, serving clients, and creating value.
Before signing any engagement agreement, understand exactly who is being compensated, how they are being compensated, and what obligations you’re agreeing to. Take the time to evaluate multiple options before committing to one.
Before committing to a fee agreement or exclusive contract, seek guidance from an experienced succession and M&A consultant focused on helping you evaluate your options—not taking a percentage of them.
Think before you sign.
No fees. No contracts. No obligation.