---
title: Internal Successions on the Rise
description: Discover the rise of internal successions in the advisory industry and learn actionable steps for building a strong succession pipeline.
---

[Advisor Edge | Practice Management & Exit Planning Strategies ](https://advisorlegacy.com/blog)

# [Internal Successions on the Rise](https://advisorlegacy.com/blog/internal-successions-on-the-rise)

 Written by [Anthony Whitbeck, CFP®, CLU®](https://advisorlegacy.com/blog/author/anthony-whitbeck) | July 1, 2025

 

After years of mass consolidation and open market sales marked by big payouts and ever increasing multiples, advisors are now looking inward for a succession strategy.

**Why It Matters:** The trend moving away from external successions to internal successions marks a major attitude shift in the industry. Once dominated by lifestyle practices and founder centric brands that were more about meeting the needs of a single advisor, the advisory industry is shifting toward a team/enterprise model focused on longevity and collaboration.

- The number of [team-based practices increased by 25% since 2012](https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/pricemetrix/our%20insights/teams%20in%20retail%20wealth%20management/teams-in-retail-wealth-management.pdf), with more than half of all practices operating in some type of team model.
- A lack of [“new blood” has plagued the industry, while nearly 40% of advisors are expected to retire](https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/pricemetrix/our%20insights/teams%20in%20retail%20wealth%20management/teams-in-retail-wealth-management.pdf) over the next decade.
- The looming “succession cliff” has prompted industry leaders and advisors to actively recruit and train new advisors from colleges, as well as middle aged professionals in search of a “second act” career.
- Founder goals have moved away from traditional “retirement and money” aspirations to more “legacy” driven goals. Many advisors now wish to build a thriving business that can continue on with out them, while cultivating Nextgen leaders who can carry the torch into the future.

**Take Action: **If done well, internal successions lead to better outcomes for founding advisors, successors, staff, and clients. Here’s what you can do to take action now:

- **Build The Succession Pipeline:** Actively [recruit “right fit” staff](https://advisorlegacy.com/services/recruiting/) for a variety of positions. Pair recruiting efforts with training and development programs to cultivate new advisors that can grow into practice leaders.
- **Leverage Experts:** Work with succession consultants to [help structure and implement succession plans](https://advisorlegacy.com/services/deal-support/turnkey-nextgen-deal-support/) that make sense for your unique practice. They can help you identify blind spots, generate legal agreements, and coach you and your successor toward a positive outcome.
- **Put It In Writing:** Always get it in writing, preferably with the help of a third party succession consultant and legal team with experience specific to the financial advisor industry.

 

**Go Deeper:** We developed two white papers to guide you through the decision to go the internal succession route, and what founders and successors need to know to develop, finance, and execute a sound transition plan.

 

[View full post](https://advisorlegacy.com/blog/internal-successions-on-the-rise)

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