Burnout driving advisors out of the industry

Client demands and the stress of managing change leading advisors to sell their practice early

Why it matters: Instead of selling on their own terms, advisors are selling just to get out, and making mistakes in the process.

  • Burnout cited as number one reason for selling, trailed by death and disability second and planned retirement third.
  • Selling under duress impacts the Advisor’s judgement, causing them to make mistakes in choosing a successor and deal structure
  • Advisors selling due to burnout or disability often don’t understand and manage their practice value, resulting in lost equity and a lower selling price

Bottom Line: Advisors spend their careers helping clients plan for their retirement, but fail to plan for their own. The result is less cash in retirement and a lackluster succession experience.

The Solution: Make succession planning and equity management a priority, while leveraging experts to help you work smarter not harder.

  • Advisors who work with a succession consultant to plan and manage their succession see on average 35% premiums in the selling price as well as smoother transitions.
  • Advisors can then sell on their own terms, to the best fit buyer who will serve their clients with the same care and attention.
  • Outsourcing functions like financial planning and training while leveraging systems and processes from practice management experts allows advisors to focus on what they do best and combat the factors that lead to burnout.

Next Steps: Take control of your succession.

  • Start planning now, whether you “plan” to retire in one year or ten. The more lead time you have, the better the outcomes for you financially, personally, and professionally.
  • Hire a succession consultant. You are not the succession expert and will make critical mistakes that will impact the selling price and transition process if you try to do it on your own. Plus, the premiums a succession consultant garners on your behalf more than covers the cost of their services.
  • Get a continuity plan in place. While you plan your ultimate succession, a continuity plan will protect you in the event of death, illness, or disability.
  • Define your ideal succession, including what an ideal successor looks like, what type of experience you want for your clients and staff, and how your succession will fund the next phase of your life.
  • Start thinking about life after the sell. A traditional retirement is not the only next phase of your life. You could move into a purely leadership or client service role in your practice, serve a cause, mentor, or start a new venture in a new career. The days of fading into obscurity and old age are long gone, but you don’t have to die at your desk to stay relevant and full of purpose.

Take charge of your succession

Our experienced team of M&A experts will guide you through the process and help you design a succession and advisor legacy that meets your goals.

About the Author: Shennandoah Connor

As Vice President of Revenue Operations, Shennandoah works closely with our internal Subject Matter Experts to create initiatives and educational content to empower financial advisors throughout every stage of their career. She leads our strategic partnerships with industry leaders and Broker Dealers/Custodians, along with other marketing and business development initiatives designed to connect advisors with valuable resources and services.


Categories: Advisor Succession


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