11.13.25

Few Wealth Firms Have More Than Handshake Succession Deals

by: Rob Burgess

Few wealth advisory firms have formal succession plans, according to Financial Planning’s latest Financial Advisor Confidence Outlook survey, which found less than one-third have documented plans and another 25% rely on informal, largely ineffective agreements. Experts say advisors often neglect their own continuity needs because succession planning feels tied to retirement or is emotionally difficult. Specialists recommend starting early, using firm-provided frameworks, setting clear timelines and treating the business like a client with defined ownership criteria and valuation benchmarks. Advisors should identify successors, assess operational readiness and openly discuss transition plans annually to ensure durability and protect clients during leadership changes.

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