05.02.2022

Retirement Options For Financial Advisors

How to sell your practice to your team

Advisors who have invested years of their lives building a wealth management practice think of themselves as successful business owners. And rightly so. They’ve poured their time, heart and energy into a financial venture that became more than a passion project, but the very enterprise that defines their careers. Part of the vision required to run a business is to have the foresight to plan what will happen to your practice when it’s time for you to retire or exit from the business. 
 
More often than not, lead advisors envision a succession plan where their partners, or the younger advisors they’ve hand-picked and mentored, would take over the practice and continue its path of success. 
 
But selling your practice to your team is simply not an option at banks or wirehouses. 
 
To preserve the dream of handing the reins to your current partners, you must first become an independent firm – a true business owner – with the power to determine the future of your own firm. This path to a preferred future exit strategy is especially appealing to those advisors who are genuine leaders – the type of men and women who put their team above themselves, who care about each team member and want what is best for them.  
 
Once independent, you will have the freedom and flexibility to sell your new firm, with its thriving book of business, to your partners and team with total control of the conditions, including the timing and the price. In planning your exit strategy with colleagues, with whom you share a personal, long-term relationship, you can surely agree on a fair price and other equitable terms. If you’re interested, you would be able to negotiate retaining some type of an ownership stake. Other scenarios could have you stay on as an owner with or without annual compensation, or you could stay on as an employee without ownership.  
 
This well-planned, two-step exit strategy – become an independent firm with the ultimate goal of selling to your team – offers tremendous flexibility and control. And it can be an easy path to pursue as some of the leading providers of supported independence, including Sanctuary Wealth, offer to coach and guide advisors and their teams on deal structuring and negotiating terms. We, and others, can even facilitate financing and/or provide capital as needed. 
 
To be fair, when comparing this strategy to the option for a wirehouse advisor to “retire-in-place” and have the team “pay back” the company for the book of business, it’s possible that the team may pay a higher price. However – and this is critical – with this strategy of going independent first, your team would actually own the firm, an asset that would sit on their balance sheet. The trade off of maybe paying more to gain true ownership of the business is a deal that every forward-thinking advisor would gladly make. The opportunity to pour your time, heart and energy into a venture that you can own outright will always offer the greater rewards. 
 
At Sanctuary Wealth, we have built a national community of entrepreneurial advisors who have chosen independence in order to fulfill their vision for serving their clients, building their teams, and pursuing a future with freedom and flexibility.  
 
I’d welcome the opportunity to share with you the advantages of our platform and the benefits of an exit strategy that provides a smart solution for you, your team and your clients. 
 
Partnered Independence from Sanctuary Wealth. The right choice.

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Pershing Transition PDFs

Pershing Program Pershing Dreyfus Fund Comparison Prospectus – Administrative Shares Prospectus – Institutional Shares Prospectus – Dreyfus Cash Management Funds Prospectus – Dreyfus Cash Management Funds Pershing Customer Fees