As Market Grows, Retiring Advisors Fail To Plan Successions

By 2030, Gen X and millennials are expected to inherit more than $23 trillion from prior generations. By 2045, a whopping $68 trillion will have been passed down. As the wealth moves, so, too, will financial advisors and their customers. CNBC reported that roughly 40% of advisors plan to retire within the next ten years, while upwards of 80% of heirs will consider changing representatives.

What does this mean for you? For starters, if you haven’t already put a succession plan into place, now is the time. Without a plan, advisors risk losing the opportunity to enjoy the rewards of their decades of effort. Of all business owners in the U.S., more than 75% plan to fund the majority of their retirement through the sale of their businesses. Yet it’s estimated that only about 2% know their businesses’ values

Instead of hiring Firm A to calculate a valuation, sourcing the right buyer or seller with Firm B, employing Firm C to secure financing for the buyer, etc., all aspects of the deal can be executed efficiently with AdvisorLaw. Our Practice Purchase Network (PPN) enables our clients to plan and explore M&A opportunities alongside a team of attorneys and staff who have helped thousands of advisors, and, soon, AdvisorLaw will be launching its custom valuation and practice SWOT analysis services. 

Advisory practices are being bought and sold in record numbers. Don’t wait until the last minute to plan for your future. If you’re interested in constructive consulting or learning more about what AdvisorLaw offers, contact us today.



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