Published on citywire.com on 08/22/2025 | Authored by Allen Darby

Opinion: Selling doesn’t have to mean an exit

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In this guest column, Alaris Acquisitions managing partner Allen Darby challenges one of the main
misconceptions about what M&A means for RIA sellers.

BY ALLEN DARBY

For advisors, the phrase ‘selling your practice’ often evokes images of retirement — a farewell to a
lifelong career in wealth management. But the notion that selling a business equates to leaving
the industry misses the mark for most advisors.
In reality, the majority of advisors who sell their practice have no immediate plans to retire.
Instead, they are driven to transact by a desire to derisk their assets, streamline operations and
position their businesses for sustained growth. Selling isn’t often an exit. Instead, it’s frequently
the start of an exciting new chapter focused on enhancing client service and empowering teams,
one which can reinvigorate an advisor’s career.

Dispelling the retirement myth
The idea that selling signals retirement stems from outdated views of succession planning, in
which advisors cash out to step away. Today’s landscape tells a different story. Industry data

indicates that advisors who sell their business often remain involved with the acquiring firm post-
sale to provide transition-related support. Many join larger firms as partners, leveraging enhanced

resources to grow their client base while continuing their advisory roles. This shift reflects a
strategic pivot, not a departure. However, the narrative of selling as an exit persists, potentially
deterring advisors from exploring partnerships that could elevate their practices
The motivations behind RIA transactions reveal why retirement is rarely the goal. Advisors sell to
derisk their assets, mitigating the volatility of running a standalone practice while securing financial stability. However, derisking is only part of the equation. Advisors are increasingly
motivated by strategic objectives that enhance their practices and client relationships, ensuring
they remain integral to their business long after the sale.

Beyond taking chips off the table: Drivers for selling
While financial security is, of course, a key factor, advisors generally sell for reasons that extend
beyond simply ‘taking chips off the table.’ These drivers reflect a forward-thinking approach to
strengthening their practices and positioning for long-term success.
Expanding service offerings: Joining a larger platform can allow advisors to provide clients
with a broader range of services, such as advanced tax planning, estate strategies or
corporate benefits consulting, thereby enriching their value proposition.
Enhancing client experience: Access to cutting-edge technology, like client portals with
real-time portfolio tracking, improves transparency and engagement, elevating the client
experience.
Accessing deeper resources: Larger organizations offer institutional-grade resources, such
as dedicated investment teams and in-house specialists, making advisors more competitive
in attracting and retaining clients.
Mentoring next-generation advisors: Many firms provide structured programs to develop
younger advisors, ensuring practice continuity and supporting long-term succession
planning.
Pursuing organic growth: Buyers often supply marketing support, client referral networks
and business development tools, enabling advisors to scale their client base and revenue.
These motivations underscore that selling is most often a means of amplifying impact, not
stepping away. Advisors aim to enhance their service offerings, streamline operations and position
their practices for growth, all while remaining actively engaged.

Redefining ownership: Rolling valuation into buyer equity
A significant trend in wealth management acquisitions is advisors rolling a substantial portion of
their practice’s valuation — sometimes as much as 50% — into the buyer’s equity. This practice
reframes selling as a realignment of ownership rather than an exit. Advisors become stakeholders
in a larger organization, sharing in its growth and success.
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By rolling equity, advisors retain a vested interest in their practice’s future, benefiting from the
buyer’s scale, resources and strategic initiatives. This approach fosters continuity, allowing
advisors to remain involved as partners, often for many years post-acquisition. It also aligns their
interests with the buyer’s, creating a shared commitment to client service and growth. For many
advisors, this ownership model transforms a ‘sale’ into a partnership that gives them both financial
stability and professional fulfillment.

A new chapter
Choosing the right buyer is critical to realizing the potential service expansions, client experience
improvements and career developments that can result from a sale. Advisors should evaluate
partners on multiple dimensions, including:
Cultural alignment: A shared commitment to client-centric values and fiduciary duty ensures
a seamless transition and sustained client trust.
Operational synergy: The buyer’s technology, staffing and service model should
complement the advisor’s practice.
Growth potential: The partner should support the advisor’s vision for expansion, offering
tools such as marketing or referral networks to drive organic growth.
Team development: Structured mentoring and succession programs can boost long-term
practice sustainability and talent development.
Client continuity: The buyer must prioritize maintaining or elevating the client experience,
preserving relationships post-sale.
It’s important to note M&A transactions are not without risk. M&A integration challenges —
primarily a lack of cultural alignment and post-acquisition expectations not being fully understood
— can threaten client retention and disrupt service quality when institutional owners acquire RIAs.
Fee structures may shift post-acquisition, requiring clear client communication to maintain trust.
Further, advisors rolling equity face market risks, as valuation growth depends on the buyer’s
performance.
Achieving cultural conviction is paramount for these reasons. Advisors need confidence that the
buyer shares their values and supports their goals in terms of serving clients. When these
elements align, selling becomes a transformative opportunity, not an endpoint.

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