For Advisors, Succession Isn’t An Event - It’s a Strategy

I've worked with thousands of Financial Advisors and their firms across North America, and succession planning consistently stands out as the most important - and most difficult - initiative they face. Not because of markets or products, but because it’s about legacy, clients, and the business built over decades.

Yet, 60% of Financial Advisors in the US and Canada have no succession plan, even when they’re within 10 years of retirement? [Ref 1, Ref 2]

Some thoughts on what Advisors can do...

The Strategic Approach

Succession works best when it’s treated as a strategic goal, not an afterthought. Advisors who set a clear retirement horizon and work backwards build firms that are fit for today and resilient for tomorrow. A practical rule of thumb: allow at least one month of preparation for every year your practice has been in business. If your systems and processes are solid, plan to reinvest 1-5% of annual revenue to get succession-ready.

The Personal Reality

I have seen how personal these projects are - particularly for Advisors nearing retirement, knowing they may be engaging in the last major initiative of their careers. Wealth management is fundamentally a people business. Succession is about building a platform so those client relationships can live on beyond any one Advisor. Even when legacy isn’t the stated goal, every step taken is building one. A clear reality check on what you want - whether a clean exit, phased transition, or lasting platform - should guide your priorities and investments.

Capturing Institutional Knowledge

Succession is often framed as transferring the founder’s expertise, appointing new leaders, finding buyers, or in some cases, winding down through liquidation. But in the lead-up to that transition, long-time staff and managers also carry critical knowledge that must be documented, integrated, and embedded into a living knowledge base. In many firms, the biggest challenge isn’t the handover of leadership - it’s consolidating the founder’s institutional knowledge, along with decades of scattered files, aging hard drives, remote servers, and newer cloud vaults. Too often, this information sits fragmented, gathering digital dust - or worse, at risk of being lost entirely.

Equally important is capturing the insights of senior team members, whose experience often lives only in their heads or on personal laptops. Succession creates a rare opportunity to bring all this knowledge into one central system, structured within processes and technology that ensure continuity. This is one of the most strategic steps in the entire project.

The good news: with modern platforms and AI, consolidating and systematizing knowledge is far more achievable - and less costly - than ever before. It’s still a process, but one that pays lasting dividends.

The Valuation Impact

Start with the end in mind! I often joke with clients, asking them to picture themselves golfing, fishing, or relaxing with their grandkids on a beach - unburdened and truly enjoying their golden years.

Beyond peace of mind, a well- executed succession also means a stronger exit and more money in the bank. At its core, succession is about valuation. Firms with clean data, documented processes, and modern systems don’t just transition smoothly - they also command higher multiples when buyers step in. 

In Summary

Succession isn’t about leaving. It’s about what you leave behind - and how strong a foundation you create for the next chapter. And it all begins with a well-planned succession project. For most firms, this means focusing on three critical themes: knowledge transfer, system building, and leadership appointment.

What’s your strategy for succession in the year ahead?