Advisor Burnout – Is It Time to Sell?
Anthony Whitbeck: June 30, 2025
A growing trend in the advisor industry is the partial sale of a specific group of clients. The main reason for this trend is that, instead of opting for early retirement, many advisors are making the most of the equity they have built with their practice and using it to reshape their work and home lives in order to make the most of both. This allows advisors to continue working on their own terms, while creating time and money to enjoy with family and fun.
Advisors who have employed this strategy have reported increased job satisfaction. This is because they have scaled down their business to focus on their ideal client while working fewer hours. Working fewer hours lets them pursue outside interests and spend quality time with friends and family — something many sacrificed while they were focused on building their practice. The partial sale is also allowing these advisors to find and position a qualified successor within the firm and ease into a permanent transition, making their succession much more manageable overall.
In order to achieve this perfect balance from a partial group sale, advisors must follow some key guidelines. These guidelines will not only help the advisor achieve short term rewards; it will help them achieve an even better succession in the long term.
Keys to a Successful Client Group Sale
Choose the Right Client Group
Many advisors assume that the best way to restructure their practice is to merely sell off the “bottom end” client group. Generally speaking, this will not help an advisor achieve their goal of realized gains and more time. This is because bottom end clients typically don’t garner enough value for the advisor, nor do they constitute a significant portion of the advisor’s time. Instead, it is better to carve out a client group that is more representative of the advisor’s time and efforts, with a similar average AUM to that of the advisor’s ideal client.
Also, when selecting a client group, it is also important to evaluate based on fit, not just financials. This includes evaluating based on personality, services, needs, and what it takes to service those clients effectively. Using a more complete picture to build your ideal client group will help you arrive at a newly envisioned practice that is more efficient as well as more rewarding.
Leverage Outside Help
The demands of a client group sale can take valuable time and attention off the practice. Not only does this create stress for the advisor, it can negatively impact the business. Its best to leverage a professional third-party who is experienced in financial advisor M&A. Not only can they provide you with an objective view of your practice, they can help you locate prospective buyers and pre-vet them for you, saving you tremendous time and energy. Also, advisors who leverage a third party for practice sales and successions often receive a better deal in both price and terms.
Begin With the End in Mind
The client group sale often serves as the first step in locating and evaluating a potential successor. This is especially true for advisors who do not have an internal successor and need to locate someone who can eventually take over their practice. The outcomes are even better if you can frame the client group sale as a “merger” and begin introducing the successor to the practice. This approach leads to a more natural and less disruptive transition for clients and staff when the advisor finally does move on and sells the rest of the practice.
Overall, advisors don’t have to be all or nothing in their practice. They can reduce their workload and achieve staggered gains that will let them start enjoying life long before they officially retire. If you are considering a client group sale and would like to discuss your options, schedule a call for a free consultation with one of our M&A experts.
Selling a Financial Advisory Practice: How to Exit Smart
Anthony Whitbeck: June 30, 2025
What’s your practice really worth, and when should you sell? Nearly 40% of financial advisors are expected to retire within the next decade, based on...
