Why Successful Firms Have Less Buyers
Legacy and business go hand in hand for many of us. We’ve built something profitable, but we’ve also built something that makes a significant impact. It shows up in how we serve our clients, honor our team, and invest in our communities.
I hear this train of thought constantly from advisors who are in the top 10% of the industry and are now thinking about their transition out of the business.
It’s a conversation that often holds valuation and culture in tension. How do you find a buyer who has deep enough pockets to pay you well but WON’T commoditize (or disassemble) your business?
That’s the question we’re addressing today.
The Internal Succession Problem
In most of these businesses, I hear a similar equation:
We have a second generation of advisors on the rise.
They understand our culture and carry our legacy.
But they don’t have the funding (or risk tolerance) to buy out Gen 1.
While internal succession may have been a consideration at some point, lots of advisors are finding the financial component to be the deal breaker.
The External Buyer Problem
As a result, some of the more influential advisors are exploring alternative options, like private equity, or even looking within their own broker-dealer. In some cases, this might not be a bad route. However, these options carry their own concerns.
The broker-dealers and RIAs stepping in to make these acquisitions don’t always have a long-established track record. While they may eventually figure it out, there are no guarantees.
Will the staff stick around?
Will the acquiring firm incentivize the advisors to stay?
Will the culture remain intact?
These are big questions without clear answers. As these firms continue to grow through acquisitions, there are no assurances for sellers looking for a legacy play.
Their choices feel constrained, especially if they want to avoid the "New York experience"—where they’re simply bought, sold, and flipped into the next big thing.
Finding the Unicorn Firms That Do Both
One of the things I’m seeing emerge is that there is a quiet handful of firms capable of doing both the financial and culture components extremely well.
The challenge is that they also usually aren’t rabid marketing machines. By personality, they’re great at executing, and I often find that they have a disdain for salesy people–though they’re more than confident in their value proposition.
That is why if you want to find firms that fit your criteria, the search is the most important part. It’s not about finding them–it’s about knowing them.
I’m working on building a network of acquisition-friendly firms that aren’t prolific, volume-obsessed buyers. They have a track record of success, a great culture, and scale to onboard other successful firms.
If you’re looking for firms like the ones I’m describing, let’s chat. No obligation. Fully confidential.
If you see yourself as one of these firms, I’d love to connect.
We’re building this for the advisors who have dedicated their careers to building something that matters. Let’s help you find the right buyer to continue that legacy.