When we hear the term “mergers and acquisitions,” we naturally think about money. For financial advisors looking to retire, the prospect of selling the business and monetizing decades’ worth of hard work would seem to suggest that “how much?” is the most important question they should ask a potential buyer.
But I find advisors care a great deal about legacy and vision, how their practice has and will continue to impact clients, family members, employees and the community long after they retire. Yes, money is important, but money is a means to preserving their vision, not an end in itself.
That’s why advisors should carefully look beyond money when evaluating buyers.
“For many founders, M&A is about the long-term sustainability of the business they have spent their lives building,” said Andy Kalbaugh, President of The Wealth Consulting Group. “They are focused on protecting the interests of their staff, advisors, clients, and the legacy they have created. Their goal should be to find a partner whose capital structure, culture, and long-term vision align with their own, helping ensure continuity, stability, and future growth for everyone at the firm.”
Future Impacting Present
Advisors’ post-retirement vision should influence a potential sale.
“A founder’s post-retirement vision is a powerful, often underestimated driver of what ‘good’ looks like in an M&A transaction,” said Jim Roth, Partner at Ascentix Partners. “It shapes buyer selection, governance, earn-outs, and the founder’s role after closing. It should guide the terms, priorities, transition plan, and cultural integration strategy. Skip this step, you risk selecting the wrong partner, regretting earn-out obligations and creating friction with the next generation of leaders.”
Matt Regan, President of Wealthcare Capital Management, agrees.
“Selling a business is a surprisingly emotional milestone,” Regan said. “Founders who have a clear vision of what comes next, beyond stepping away from a business, are often better equipped to select the right partner and balance the needs of their clients and staff with their own life goals and financial expectations.”
Don’t Forget Family
Except for spouses and those directly involved in running the practice, family members often play only a tangential role in a transaction. But advisors should consider involving them earlier in the process and in a meaningful way. Engaging family members in good faith will help preempt future conflict and dysfunction.
“Every business and family is unique, but to the extent that the family has been drawn into and/or defines their identity as part of the business, it makes sense to incorporate a broader perspective about the ideal transition strategy,” said Bruce Cameron, Partner at Berkshire Global Advisors.
Said Roth: “A founder can be successful and still mishandle family dynamics—often where succession plans fail. Smart founders treat family involvement as a deliberate process, not an informal conversation. The goal is to protect relationships, reduce surprises, and align the M&A strategy with their legacy. The founder should control the process and flow of information.”
Protecting Clients
Clients are a key part of any legacy. Advisors spent years cultivating these relationships and need to find a buyer that will not only protect those relationships but strengthen them.
“At Bridgemark, we discuss feel, fit and financials,” said Jeff Nash, CEO and Co-Founder of Bridgemark Strategies. “Founders that embrace that philosophy and prioritize each area properly will be confident they have made the right decision. The right strategic partner will not just provide good service; they should be able to enhance it in a traditional one plus one equals three scenario.”
Kalbaugh cautions against private equity firms with short-term investment horizons that might clash with the goal of protecting client relationships over time.
“Selection of the right transaction, whether it’s an investor or new owner, is key to maintaining service for loyal clients,” he said. “The culture, vision, and timeframe of the buyer all play a role in ensuring long-term sustainability of the firm.”
He continued, “I would not sell to a private equity firm with a three-year investment horizon if I have longer-term plans. It should be a more thoughtful approach, aligned with long-term objectives, and all the better if the founder stays involved to help provide continuity for clients and the business.”
Employees And Next Gen Add Value
An advisory firm that nurtures new and younger talent will find that such forward-thinking efforts actually increase the value of the business.
Nash said that “a team with next-generation talent will be a more valuable team. Buyers value those businesses more as they themselves are looking for as much next-generation talent as they can get. The important lesson for a founder to remember when seeking a new partner firm: make sure the philosophy aligns with the culture you have built within.”
“In many cases, employees and next generation leaders are an integral part of the value proposition and can materially increase the overall value that a business can realize as they carry things forward,” Cameron said. “Treat them accordingly—they may be a critical part of the long term economics.”
Maintaining a sense of continuity is also crucial to retaining client loyalty, so a firm should invest in developing employees and next-generation talent years before a sale, according to Kalbaugh.
“Investors value a strong team, and the founder should take steps to align everyone’s interests in the long-term success of the firm, years before a transaction is contemplated,” Kalbaugh said. “This may include employment agreements, equity ownership rights that create incentives, or other rewards to ensure those involved will benefit from a successful transaction.”
“Clients can also be included in discussions so they know any handoff to a new advisor was thoughtfully planned,” he said. “That will help support retention.”
Uplifting Communities
This topic doesn’t normally get the attention it deserves. Advisors don’t work in a bubble. They often develop strong relationships with their communities, relationships that advisors should factor into any transaction.
“A founder’s legacy extends beyond assets under management,” Regan said. “It includes relationships, community impact and the values embedded in the firm. Founders should look for partners with shared values to ensure those contributions endure and that the organization continues serving clients and communities in meaningful ways after the founder departs.”
Said Roth: “Advisors often define legacy through clients and successors, but community impact can be even more enduring. Firms can be sold and books transitioned; the trust, stability, and civic influence advisors leave in their communities can last for decades. The strongest advisors shape that legacy intentionally.”
Avoid This Mistake
Advisors who focus too early on price and too late on legacy, family, clients, employees and life after the sale risk hurting the legacy they worked so hard to build.
“They negotiate hard on price, then realize too late they didn’t ask about culture fit, client transition plans, or what their day-to-day looks like post-close,” Nash said. “Price matters, but it’s one piece. For founders focused on ‘sell and stay,’ they are happiest when they partnered with a firm that truly adds value across the spectrum vs. focusing on price.”
“Reputation carries forward indefinitely and is exceedingly hard to repair once damaged,” Cameron said.
Larry Roth is CEO of Wealth Solutions Report and Founder and Managing Partner of Ascentix Partners.
