To PE or Not to PE: What Every Advisor Should Know About Private Equity Offers (Ep. 35)

When Private Equity Calls: A Guide for Advisors Private equity has officially moved downstream. PE-backed aggregators that once targeted billion-dollar firms are now writing offers for practices with $150 million to $500 million in AUM, and many advisors are receiving these offers without having gone looking for them. In this episode, David Grau Jr, MBA. and Kristen Grau, CPA, CVA, CEPA cut through the headlines to explain what a PE-backed deal actually looks like from the inside. The conversation covers who these buyers are, how they structure offers, and why the classic idea of “selling and retiring” often does not fit the PE model. David and Kristen walk through financial normalization, recurring revenue debates, P&L preparation, and the often-overlooked reality that time kills deals. If you have ever been approached by a PE-backed firm, or think you might be, this episode gives you the framework to evaluate the offer clearly. SRG works exclusively alongside sellers in the M&A process, helping advisors get the right offers in front of the right buyers. Whether you received an unsolicited offer last week or you are thinking three to five years ahead, now is the time to understand the landscape. Show Notes PE-backed aggregators vs. direct PE: Direct PE investment goes to large enterprises (typically multiple billions in AUM). PE-backed aggregators have already taken that investment and are deploying it through acquisitions of firms as small as $150M to $250M in AUM. The seller profile is shifting: PE buyers want firms they can grow. The new seller profile is 50 to 70 years old — someone still willing to work and grow, not ready to retire in 12 months. Big multiples come with conditions: PE buyers may quote 10x to 12x earnings, but achieving that figure typically requires staying on for three to five years and hitting specific growth targets above current trajectory. Normalization can shrink your effective multiple: If you plan to leave post-sale, PE buyers add replacement comp back into expenses — often 25% to 35% of revenue — reducing normalized earnings and the effective payout. Know your numbers: Experienced buyers will cross-reference reports and look at client-level data. Sellers who do not know their numbers give buyers leverage to negotiate down. Clean your P&L before going to market: Remove owner-discretionary expenses, get onto a consistent tech stack, and track your financials quarterly for three to five years before selling. Best price or best terms — rarely both: A high purchase price often means more back-end risk and longer commitments. A lower cash deal with clean terms and a shorter transition may serve some sellers better. When you get an offer, pause: PE buyers are disciplined and experienced. They will create urgency. Pause, shop the offer, and call SRG before signing anything. Hosted By David Grau Jr., MBA (Founder / CEO) Kristen Grau, CPA, CVA, CEPA

How to Get “PE Value” With or Without PE

Watch the Replay https://vimeo.com/1208241907?share=copy&fl=sv&fe=ci Can You Get Private Equity Value Without Selling to Private Equity? In this session, Succession Resource Group’s David Grau, Jr., MBA, unpacks how advisory firm owners can pursue private equity-level value whether or not they sell to private equity. The webinar breaks down the difference between direct PE investment and PE-backed aggregators, how headline multiples of up to 15x EBITDA translate into the 9x to 11x most sellers actually realize once deal terms are accounted for, and why the definition of a seller has shifted toward owners who sell and continue to run their firm. David also reviews the four variables that shape the right path, including practice size, timeline, buyer universe, and long-term priorities, along with the deal structures that decide what an owner takes home, from the traditional 80/20 down payment to today’s 40/30/30 split of cash, rolled equity, and earnouts. He then shows how internal succession and peer-to-peer sales can close the value gap and approach PE-level outcomes when firms start early, keep growth in focus, and sell in tranches. Advisors weighing an exit in the next three to ten years, evaluating an unsolicited offer, or planning an internal succession will find this a practical, data-backed guide to their options. Host David Grau Jr. MBA CEO/President Paper-plane Linkedin-in Transcript 00:00:06.000 –> 00:00:18.000Good afternoon, everyone. David Grau Junior, President of Succession Resource Group here, welcoming you to our session today. As you can hopefully see on screen titled how to get PE value 00:00:18.000 –> 00:00:39.000With or without PE obviously getting PE value from PE is much easier, but we want to certainly unpack what’s happening out there right now, private equity, private equity backed aggregators, but also how those values, terms, deals in general compare to internal succession or external. Basically, by the time we’re done here today. 00:00:39.000 –> 00:00:57.000Either through the content or your questions, hopefully through both, we’ve been able to plant the seed. Get you a little bit better educated on your options because the world of M&A, I’m not going to say it was ever simple, but by comparison, I look back 10 years compared to where we are today 00:00:57.000 –> 00:01:05.000And it is exponentially more complicated. And so we want to try to make sure that, especially if you are contemplating 00:01:05.000 –> 00:01:11.000selling and might even redefine what a seller is a bit today, putting together as a team 00:01:11.000 –> 00:01:17.000If you’re contemplating selling in the next, I don’t know, 12 months, 5, 10 years. 00:01:17.000 –> 00:01:20.000your options are 00:01:20.000 –> 00:01:27.000Are what you want them to be, right? If you call us and say, I want to be done in 12 months, we can help you. If you say, I want to be done in 12 years. 00:01:27.000 –> 00:01:42.000We can also help you, and you’ll have more and different options. So there is no wrong answer necessarily unless it’s not congruent with the outcome that you’re driving towards. That’s what we ultimately want to drive towards today in our session. So we will make sure we carve out time to say we 00:01:42.000 –> 00:01:48.000Collectively, you may carve out time for some Q&A towards the end, in case there are questions that come up. 00:01:48.000 –> 00:02:02.000There was a Q&A panel, and if you are good about using it, I promise I would be good about watching it, and we’ll try to maybe even answer those questions organically as they come in. That way it’s a little more topical for the portion of the presentation that I’m on, and I do have the slide deck up that I’ll share with you 00:02:02.000 –> 00:02:11.000If you want a copy of that slide deck, our team will be reaching out to you after the webinar here today. So just let them know you’d like a copy of that deck. It is available. 00:02:11.000 –> 00:02:24.000We didn’t intentionally try to build a little bit more content into some of the slides so that 6, 12 months from now, you could look at it and with a little bit of background, have it still be useful to you because not all just pretty pictures and diagrams. 00:02:24.000 –> 00:02:37.000Beyond that, if you would like a copy of the recording session is being recorded. We record all of these, and we’ll send that out to you, I believe, automatically. That should come probably tomorrow. If you are registered and not attending 00:02:37.000 –> 00:02:47.000you’ll know when you receive the email. You’re not here. And if you are registered and attended and you want to rewatch it, rewatch any portion of it, share it with somebody you know that needs to hear this message, feel free 00:02:47.000 –> 00:02:58.000And last but not least, we’re not going to bury you with a bunch of poll questions here today, but I’m going to start out with one at the very beginning that’ll have our moderator here put up. 00:02:58.000 –> 00:03:01.000It just frankly helps us dial in the content 00:03:01.000 –> 00:03:06.000I’m pretty good doing some of the stuff on the fly, but certainly for future sessions that we have coming up 00:03:06.000 –> 00:03:17.000And also make sure we can get you the best and most relevant content. We’ve got a lot of articles, white papers, resources, even sort of interactive quizzes that might be useful to you. 00:03:17.000 –> 00:03:29.000But only if we know where you land on these things. So you’ll see the quick poll question that’s up there. When you’re done answering it, obviously we’ll close it out, but it will not inhibit us from progressing through the rest of today’s session because 00:03:29.000 –> 00:03:36.000I’ve got a good 40-45 minutes for the content, and then, like I said, I wanted to make sure we carved out time for your questions. 00:03:36.000 –> 00:03:37.000So 00:03:37.000 –> 00:03:44.000Quick intro, who’s SRG? Hopefully you figure that out before registering, but if you didn’t, I appreciate you 00:03:44.000

5 Most Common Post-Transition Roles

Download Your eBook! Uncover Your Post Sale Potential.  You have many post-transition opportunities – from helping develop and analyze investment models, becoming a mentor to junior advisors, and/or staying on in a rainmaking capacity. Selling your practice now and staying on for the next couple years is not only achievable, but also creates more possibilities than most advisors think. Take a look at the (5) five post-transition roles that allow you to phase out on your terms and uncover your post-sale potential! Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form.First Name *Last Name *Phone * Work Email * Would you like to join SRG's newsletter to receive industry updates and other webinar opportunities? * Yes No Download

Building Your Team for Succession Success

Watch the Replay Does Your Team Structure Support Your Succession Plan? In this webinar, Succession Resource Group’s Julia Sexton, CVA, and David Grau Jr., MBA, explore how employment-related planning can strengthen an advisory firm’s long-term succession strategy. The session covers how employment structure, role clarity, and internal alignment all factor into a firm’s ability to execute a successful transition. Succession Resource Group walks through common organizational and planning gaps that create challenges during succession events, and what firms can do to address them before a transition is on the horizon. Advisors preparing for internal succession, evaluating their current team structure, or working to build a stronger operational foundation will find this session particularly relevant. Host David Grau Jr. MBA CEO/President Paper-plane Linkedin-in Host Julia Sexton, CVA Director of Strategic Organizational Planning Paper-plane Linkedin-in Transcript 100:00:07.270 –> 00:00:16.589David Grau: Good afternoon, everyone. David Grau here, President of Succession Resource Group, welcoming you to our session today. We’ll give you just a second. 200:00:16.870 –> 00:00:20.080David Grau: To get everyone in, Zoom always takes just a minute here. 300:00:20.310 –> 00:00:26.610David Grau: In the meantime, just a couple of quick housekeeping items, while everyone gets in. 400:00:26.710 –> 00:00:28.570David Grau: Gets access to the webinar. 500:00:28.880 –> 00:00:37.189David Grau: session today, hopefully you’re in the right spot. We are talking about building your team for succession, so this is certainly geared 600:00:37.290 –> 00:00:50.419David Grau: towards thinking about internal succession, but we’re going to talk about that as a springboard, or Plan A, and how it, frankly, can help set up Plan B, maybe even Plan C. So even if you’re listening today, and you’re sort of on the fence. 700:00:50.570 –> 00:00:57.540David Grau: About internal succession planning, the viability, ability to get value, there will… 800:00:57.610 –> 00:01:14.159David Grau: be more broad conversations than just internal succession, but we’re gonna come back to that, sort of as plan A for today. So, couple of just general housekeeping items. There’s gonna be a couple of quick poll questions. They won’t slow us down today. They’ll pop up. 900:01:14.160 –> 00:01:22.139David Grau: you can access them, complete them. We do ask if you don’t mind completing them for us. Again, A, they’re softball questions, but B, 1000:01:22.250 –> 00:01:33.490David Grau: they help us… there you go, there’s a poll question… help us bring you better, more refined content. A little bit today. Julie and I are pretty good about adjusting on the fly, but more specifically, we do try to bring 1100:01:33.610 –> 00:01:39.640David Grau: more useful educational content to you throughout the year, and it’s only early June. 1200:01:39.640 –> 00:01:58.830David Grau: So, the more feedback you can give us, the better resources we can provide you in the short term, the better content we can bring you long term. So anyway, I belabored the point. There’s poll questions, there’s one up right now, there’ll be one or two later, but like I said, we’ll continue as we present. If you don’t mind just participating, we’d greatly appreciate it. If you don’t, just stay up there and keep bothering you for the rest of the webinar. 1300:01:58.830 –> 00:02:12.060David Grau: So, second one is the slides. We’re using slides today, obviously, to guide the conversation. You will find them to be amazing slides. We’ve got a great marketing team. Julia and I put a lot of time and effort into them. 1400:02:12.080 –> 00:02:20.589David Grau: to be fair, Julia and Parker put a lot of time into them, and then I took it over for Parker, because he was tied up, we do a lot of project work this time of year. 1500:02:20.700 –> 00:02:31.930David Grau: So I get to step in and pitch it here today and talk with you about this stuff, but the slides are available. We do try to make sure that they are useful to you as standalone resources later. 1600:02:31.930 –> 00:02:46.290David Grau: So if you’d like a copy of those, just let us know. Our team will be reaching out to you, and we’re happy to get you a copy. Last but not least, the session is recorded, so if you have anything that you would like to rewatch, you want to share it with somebody after the fact. 1700:02:46.290 –> 00:02:51.800David Grau: That will also be sent to you, I believe, automatically within, like, 24 hours? 1800:02:52.950 –> 00:03:02.819David Grau: Last but not least, again, we’re gonna focus mostly on planning for internal succession as Plan A, and how that can help support, potentially, a Plan B and Plan C. 1900:03:03.150 –> 00:03:12.749David Grau: But if, as you’re listening today, you think, this is for the birds, or things change over time, it happens, half of our organization 2000:03:12.880 –> 00:03:16.129David Grau: Is dedicated to and focused around 2100:03:16.640 –> 00:03:20.029David Grau: Helping you build a more valuable business, exit that business. 2200:03:20.890 –> 00:03:32.739David Grau: The other half of the business is the listing side, where we can actually help you either confidential, you know, kind of off-market private listing, full-blown listing to bring the most potential candidates in. 2300:03:32.740 –> 00:03:42.240David Grau: So if you do need that solution, it’s different than the rest of the stuff Julie and I will be talking about here today, but we’ve got a whole dedicated team that, if you want to go that route, kick the tires on it. 2400:03:42.560 –> 00:03:54.699David Grau: If you get an unsolicited offer, private equity-backed aggregator, these folks are really good at what they do, and you don’t want to go it alone, we’ve got a whole dedicated team. So, not the topic for today, probably won’t come up again, but just planting the seed. 2500:03:55.760 –> 00:03:59.990David Grau: With that, let’s dive in. So, as we… 2600:04:00.810 –> 00:04:15.990David Grau: look at the calendar for the rest of the year. I mentioned the poll questions help inform the content we bring you. Well, the next two webinars,

Building Your Team for Succession Success

Watch the Replay Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form.First Name *Last Name *Phone * Work Email * Would you like to join SRG’s newsletter to receive industry updates and other webinar opportunities? Yes No Access Recording Does Your Team Structure Support Your Succession Plan? In this webinar, Succession Resource Group’s Julia Sexton, CVA, and David Grau Jr., MBA, explore how employment-related planning can strengthen an advisory firm’s long-term succession strategy. The session covers how employment structure, role clarity, and internal alignment all factor into a firm’s ability to execute a successful transition. Succession Resource Group walks through common organizational and planning gaps that create challenges during succession events, and what firms can do to address them before a transition is on the horizon. Advisors preparing for internal succession, evaluating their current team structure, or working to build a stronger operational foundation will find this session particularly relevant. Host David Grau Jr. MBA CEO/President Paper-plane Linkedin-in Host Julia Sexton, CVA Director of Strategic Organizational Planning Paper-plane Linkedin-in

Grow Your Advisory Firm Without Limiting Your Exit Options

Last Updated: August 25, 2026 Authors Growth builds momentum. It creates new opportunities, expands your client base, and can increase enterprise value. But growth also forces us to build structure. Over time, that structure shapes your future transition options. Decisions around equity, compensation, leadership, client relationships, and governance can either expand your optionality, or quietly limit it. Advisors make decisions about their firm, often without thinking about the downline impact. Without intentional planning, it is easy to paint yourself into a corner through years of choices, and end up with only one viable exit option. Think of it this way: if a client walked into your office with $5 million to invest, but told you they were retiring in six days, you could still help them. But, imagine how much more you could have done if they had come to you five or ten years earlier. The same principle applies to your business and planning for your eventual exit. The firms that get the highest valuations are not simply the fastest growing. They are the ones built to be scalable, transferable, and adaptable, giving them multiple transition options. The Earlier You Start, The More You Control Every business owner will exit at some point. The question is not “if,” but “how,” and how well. The earlier you begin planning, the more control you retain over that outcome: Earlier planning leads to more transition options More options create a stronger negotiating position Better preparation leads to maximum value for the founder This is why the best-prepared firms often begin planning 10 or more years in advance. Without that runway, decisions become reactive. With it, you can build intentionally while preserving flexibility. And regardless of which path you eventually choose, internal succession, merger, private equity partnership, or external sale, the foundation you build today will determine the options available to you tomorrow. Universal Do’s and Don’ts to Preserve Optionality For advisors who are still evaluating their long-term direction, the goal is to have options and remain flexible. That means avoiding decisions that unintentionally lock the business into a single outcome, or making decisions that will provide you options. Across firms, a consistent set of patterns either supports or limits future flexibility. Ownership Structure Do: Understand how your entity structure and equity design impact future transition options. Many firms are operating with the same entity they set up when they first launched, which was adequate at the time. But, what worked then may not serve you now or in the future. As your firm grows, revisit your entity structure to ensure it is still optimal for your short and long-term succession and growth goals. Most of the time, what you had twenty years ago isn’t ideal for where you are today. Don’t: Distribute equity without buyback or bring-along provisions. If you share equity, make sure your agreements preserve the flexibility to steer the business in the direction you choose. Client Relationships Do: Delegate client service work to your team, freeing you up to mentor, train, manage, and grow the business. Also – as you hand off client relationships, ensure you have appropriate protections in place so team members can leave and take your clients. Non-competes are difficult to use and hard to enforce – there are other better ways to protect your practice. Don’t: Overcommit ownership or transition expectations without formal agreements in place. Informal arrangements may feel sufficient today, but they create significant complications during a disagreement or transition event. Financials Do: Maintain clean and clear financials over multiple years and invest in scalable growth. Predictable financials, where the chart of accounts doesn’t shift dramatically year to year, are essential for any planning or transaction process. Know your P&L. Don’t: Compensate employees at levels that undermine owner economics. A common pitfall: team members receiving variable, revenue-based compensation without bearing the risk or downside of ownership. When it comes time for those team members to buy in, the math (especially when risk-adjusted) simply doesn’t work. There is no faster way to decimate your value than to pay your advisors using a percentage of revenue on clients you assigned to them. Organizational Resilience Do: Build a team that allows the business to grow beyond the founder. Gen1 mentors and trains Gen2. Gen1 and Gen2 work to mentor and train Gen3, and so on. Whether you plan to sell internally to your team, or to a competitor, a well-staffed firm that can operate independent of the founder will unlock the best outcomes. Don’t: Assume the right transition option will materialize without preparation or that qualified team members automatically want to be successors. Desire and capability are two different things, and you need both. Legal and Compliance Do: Keep entity documents, employment agreements, and compliance records current. Every team member, especially client-facing advisors, should have a formal agreement in place. Don’t: Wait until due diligence to address gaps. Problems discovered at the ninth inning are far more expensive and stressful to resolve than those addressed years in advance. Understanding the Four Primary Transition Options Most financial service firm transitions pursue one of four paths. Each requires different preparation, timelines, and trade-offs. Internal Succession Typical timeline: 5 to 10 years (from the first sale to the last) Internal succession focuses on transitioning ownership and leadership to the next generation within the firm. To do this effectively, firms must: Recruit and retain quality advisors and leaders Mentor and train employees to become viable successors Develop leadership capabilities over time Implement equity sharing plans as part of the career track Gradually transition client relationships before the founder’s exit One of the most important things to clarify early is your “why.” Internal succession typically prioritizes legacy, continuity, control, and minimizing disruption for clients. It is unlikely to produce the highest value for the founder, compared to an external transaction, but for many founders, value is not the primary goal. “When it comes to internal succession, you should be convicted in the outcome — transferring the business to your successors

How to Make a Merger a Growth Move

Watch the Replay Is a Merger the Right Growth Move for Your Advisory Firm? In this webinar, Succession Resource Group’s Nicole Frey, CFP®, and Ryan Grau, CVA, CBA, walk advisory firm owners through the full merger process, from initial preparation to post-merger integration. The session covers why firms pursue mergers, how to evaluate whether a potential partner is the right fit, and what structural and legal considerations need to be addressed before any deal moves forward. Download the Presentation Deck Here Download Speakers Host Nicole Frey, CFP® Director of Team Solutions Paper-plane Linkedin-in Host Ryan Grau, CVA, CBA Director of Valuations Paper-plane Linkedin-in Transcript 100:00:05.100 –> 00:00:17.260Nicole Frey: Hello, and welcome to Succession Resource Group’s monthly webinar series. Today, we will share with you how you can become stronger together by making a merger a growth move. 200:00:17.360 –> 00:00:29.270Nicole Frey: For those of you who are interested in more content from us, we have a webinar coming up every month. You see the next two up here on the screen, and in the chat, you will find the link to sign up for those webinars. 300:00:29.270 –> 00:00:42.069Nicole Frey: If you forget, or if you want to postpone that to a later time, please feel free to follow us on LinkedIn. You will find the announcements there as well, along with other great content that we publish on a regular basis. 400:00:43.780 –> 00:00:56.829Nicole Frey: For those of you who are not familiar with us, just a quick introduction. Here at SRG, we help advisors turn business goals into reality. Our mission is to help you understand your options. 500:00:56.950 –> 00:01:01.779Nicole Frey: Develop a great strategy, and ultimately put your plan into action. 600:01:02.150 –> 00:01:12.580Nicole Frey: Our team’s experience covers areas such as valuations, M&A, equity planning, HR resources, and organizational strategies. 700:01:13.340 –> 00:01:18.989Nicole Frey: At the end of the day, our goal is simple. We want to help you build a strong and lasting business. 800:01:20.310 –> 00:01:36.499Nicole Frey: Your presenters today include Ryan Grau, our Director of Valuations. Ryan is a Certified Valuation Analyst and Certified Business Appraiser. I would say he’s the industry-leading expert on valuing advisory and wealth management firms. 900:01:36.550 –> 00:01:43.930Nicole Frey: He has been admitted in multiple states, as an expert witness, and testified in FINRA arbitrations. 1000:01:44.010 –> 00:01:50.680Nicole Frey: NT has completed thousands of valuations for M&A, succession, litigation, and tax purposes. 1100:01:51.480 –> 00:02:03.759Nicole Frey: My name is Nicole Frye. I am the Director of Team Solutions here at Succession Resource Group. I help advisors with entity formations, entity restructurings, and mergers. 1200:02:03.760 –> 00:02:16.519Nicole Frey: My background is mainly legal. I study law in Germany, where I’m originally from, and I’ve worked for law firms for quite a few years. And now here at SRG, I help advisors, 1300:02:16.950 –> 00:02:21.209Nicole Frey: Integrate their firm successfully, and also build sustainable partnerships. 1400:02:23.410 –> 00:02:40.000Nicole Frey: Before we start with today’s agenda and content, I just want to get some housekeeping items out of the way to make sure you’re set up well for this presentation. Our team will also pull up a short poll survey here to answer some questions, so please feel free to submit your responses. 1500:02:40.340 –> 00:02:56.450Nicole Frey: For any questions you might have, we encourage you to submit those in the Q&A section of this webinar. We love to hear from you. We also like to know if something is not clear, so we can help clarify that and customize the content to your particular needs. 1600:02:56.770 –> 00:03:05.950Nicole Frey: The webinar recording will also be available in the next 24 hours, so please look out for an email from our team with a link so you can access that. 1700:03:06.130 –> 00:03:23.479Nicole Frey: And if you like today’s presentation deck, you can also request that from us. So please feel free to reach out to our team, or you can just wait until our team reaches out to you. They want to make sure that your questions are answered, and that might be a good time to also request the slide deck. 1800:03:24.530 –> 00:03:34.979Nicole Frey: All right, so your poll questions and responses are in. We appreciate that feedback, so that we can tailor our communication to you based on your particular needs. 1900:03:37.790 –> 00:03:40.500Nicole Frey: For today’s agenda. 2000:03:41.480 –> 00:03:59.129Nicole Frey: I want to start off by talking about why advisory firms seek out mergers, before we dive into the different phases of a merger. And those phases will cover the pre-merger preparation that you can take in order to get ready for that merger. 2100:03:59.130 –> 00:04:08.640Nicole Frey: We will then talk about the actual merger process, and here Ryan will help you understand some of the valuation considerations that are necessary. 2200:04:08.640 –> 00:04:28.990Nicole Frey: And then we’ll talk about the post-merger implementation, which is often forgotten, unfortunately, and then the merger is not going to be as successful as it can be. So definitely something we want to take some time today to help you understand what is needed in order to make that merger as successful as possible. 2300:04:31.790 –> 00:04:55.359Nicole Frey: When it comes to reasons why advisory firms seek out mergers, they can be very different, so it depends on where your business is in its current life cycle. Obviously, for some advisors, they’re seeking faster growth, so rather than just growing their business organically, they’re looking into merging other partners in who also have a book of business. 2400:04:55.450 –> 00:04:59.470Nicole Frey: So the merger is one good strategy to get that accomplished. 2500:04:59.820 –> 00:05:14.580Nicole Frey: Mergers can also result, or should result, in more scale. We see that all the time, that mergers result in more revenue being combined, so you see a lot more growth there on that end. 2600:05:14.580 –> 00:05:25.349Nicole Frey: While the expenses grow at a slower rate. So that’s the

Grow Your Firm Without Limiting Your Future Exit Options

Watch the Replay Are Your Growth Decisions Expanding or Limiting Your Future Exit Options? Many advisors focus on growth without realizing the structural decisions they make today can shape their future exit options. In this on-demand webinar, Succession Resource Group explores how growth-stage RIAs and independent advisory firms can increase enterprise value while preserving strategic flexibility. Learn how firms position themselves to remain scalable, transferable, and attractive in today’s M&A market, while keeping the door open for internal succession, a future sale or merger, capital investment, or long-term independence by choice rather than default. Download the Presentation Deck Here Download Speakers Host David Grau Jr. MBA CEO/President Paper-plane Linkedin-in Host Kristen Grau, CPA, CVA, CEPA Executive Vice President Paper-plane Linkedin-in Host Parker Finot Director of Transaction Advisory Services Paper-plane Linkedin-in Transcript 100:00:06.820 –> 00:00:21.600David Grau: All right. Good afternoon, everybody. We’re going to go ahead and give everyone just a second here. It always takes a minute to get everybody in and admitted, but in the meantime, I will put up our deck for you to stare at instead of Parker, Kristen, and I. So… 200:00:22.020 –> 00:00:33.030David Grau: session here today. You know the title, presumably. You were kind enough to reserve time on your calendars to join us here, but it is growing your firm without limiting your future exit options. 300:00:33.080 –> 00:00:42.730David Grau: This is a topic we talk about a lot internally, right? Because we see this happen where folks, they do internal succession work, right? They’re sharing equity, they’re doing stuff with their team, which is great. 400:00:43.440 –> 00:00:54.940David Grau: And unfortunately, it just doesn’t end up panning out as well as they had hoped, right? They grow too fast, the team doesn’t grow fast enough, they don’t have the desire, but unfortunately, the documents that they use, the path that they chose. 500:00:55.110 –> 00:01:09.410David Grau: ends up cutting off different options for them that they would have otherwise liked to have left open. And so that’s thematically what we’re going to focus on here today, that you continue to build and take action, that we can be as intentional about having our eye towards the future. 600:01:10.030 –> 00:01:15.810David Grau: And not doing things that could close doors too early, that we’re not comfortable with. 700:01:15.810 –> 00:01:30.620David Grau: Especially having that happen inadvertently, or that we can at least proactively be building our business in a way that we could pursue a private equity sale, or an internal sale, or maybe a merger, or who knows, maybe safety net. We could also just sell this thing to a peer and walk away in a couple years. 800:01:30.880 –> 00:01:32.439David Grau: If you do it right. 900:01:33.180 –> 00:01:45.679David Grau: most, if not all of those, can be options for you. Now, I’ll also acknowledge it’s going to be somewhat size-dependent, right? If you’re sitting here listening today, and you are an empire builder, you’ve got a billion in AUM, and you’re heading towards your next two or three. 1000:01:46.620 –> 00:01:54.619David Grau: you legitimately could pursue all of these options, right, if you’re careful. If you’re sitting here listening, you do a million a year in annual revenue. 1100:01:55.320 –> 00:02:06.689David Grau: you may or may not want to grow your business to the size where you do an internal succession plan, right? That may just not be in the cards as something you’re even desirous of. Maybe you don’t like managing people, maybe you don’t like people at all. I get it. 1200:02:07.040 –> 00:02:25.110David Grau: But there are still things, even if you cross that one off the list, that you could be considering in other options, other avenues, depending on the timeframe, what you’re trying to get out of it. So, that’s our focus here today. It’s gonna be a little different for each of you, but we are going to make sure that we hit all of the potential exit strategies and some of the do’s and don’ts. 1300:02:25.190 –> 00:02:30.290David Grau: Quick housekeeping items, real easy ones here. The deck that we’re going to be using here today 1400:02:30.560 –> 00:02:35.710David Grau: If you find it useful, interesting to reference back to, it will be available to you. 1500:02:35.900 –> 00:02:42.650David Grau: Our team will be following up with you after today’s session, so just let Sabrina, Craig, Nikki know when they reach out. 1600:02:42.760 –> 00:02:51.989David Grau: That you’d like a copy of it, and I’ll be happy to get it to you. The session is also being recorded, or at least I hope it is. You’ll get a copy of that in your inbox automatically tomorrow. 1700:02:52.550 –> 00:02:59.160David Grau: And last one is, we’re gonna have a quick poll question, or a couple questions, one poll here at the very beginning. 1800:02:59.360 –> 00:03:08.690David Grau: Case in point. This won’t slow us down or distract, it just… this simply helps us focus the content that we bring you in the coming months. 1900:03:08.900 –> 00:03:25.330David Grau: that it’s as relevant and topical, and that the content of those presentations is as useful and on point as possible. But to do that, we need your feedback. So, if you don’t mind just taking a second, there’s 7 quick kid or questions here. If we don’t see enough responses, I’ll just sit here and stare at you till the other 46 of you answer. 2000:03:25.730 –> 00:03:37.749David Grau: But looks like we’ve got answers rolling in. We certainly do appreciate it. It, believe it or not, is actually useful. In the meantime, I say it’s helpful for informing the content. It’s not helpful for informing the next three presentations, because those are already lined up. 2100:03:37.860 –> 00:03:56.990David Grau: But it answers here can actually help inform the content that we cover in each of these. The one next month is going to touch on mergers. We’re going to talk about that a

Succession Planning 101: Steps and Processes for Advisory Companies

Last Updated: August 25, 2026 Author Introduction All businesses, regardless of type and size, have an organizational structure that determines how the company is managed on a daily basis. While they may have all the right advisors in place for the current state of the business, it is important for organizations to make sure they have a plan in place to keep the business thriving long-term, regardless of who is at the helm. Succession planning, as both a concept and a strategy, establishes a framework for identifying and developing next-gen talent to replace the founder when she/he exits the business. What Are the Seven Steps for Company Succession Planning? While it may be difficult to predict when a succession event will (or should) take place, it is best to begin the succession planning process early enough to construct a thorough and seamless plan that facilitates both the qualitative and quantitative parts of the process. While seven to ten years before the founder’s retirement are ideal for internal succession, or two to four years for a merger/sale, timelines are often much shorter. Unforeseen events within a company, health issues, and changes-of-heart can occur, even for the steadiest of businesses and owners. This underscores the importance of defining a strategy and committing that plan to writing as soon as possible. Even if there is no inkling that changes are imminent, it is critical to begin with the end in mind since no one lives forever. Here are seven key steps to succession planning to keep in mind: 1. Determine Objectives and Clarify the Owner’s Vision: The preferred outcome for succession planning may be different for each individual business, however, the goal for most will be for the business to continue to thrive with the next generation of advisors at the helm. It is crucial to have clarity on the primary objectives within a succession plan. This could include objectives such as improved retention, sustaining long-term growth, identifying successors for key positions, defining how the plan will be funded and taxed,, and creating business continuity. 2. Identify Key Positions and Leadership Requirements: A succession plan should clearly account for the integral roles that are critical for organizational success. An assessment of the career trajectory for the employees may inform the priority each role has within a succession plan and who will assume the duties of the founder upon his/her exit. If planned retirements are in place, a succession plan can be executed with even more focus and precision. For all key positions, it should be determined what the primary skills, knowledge, and qualifications are required to do the job effectively and ensure that a business continues to run smoothly with the next generation of leadership. 3. Evaluate Organization for Potential Candidates: The organization may already have several key employees with high potential that should be considered as part of the succession plan. By identifying and developing employees to meet the requirements of leadership positions in the company, a business can proactively plan for a succession event and give employees more incentives in the process. If the firm lacks such candidates, developing an alternative strategy as a back-up is critical. 4. Create a Development Process: Organizations should always be investing in the career development of internal talent within the company. However, in the midst of succession planning, this becomes even more important. Succession choices should have a plan in place for training and development to help them grow into viable candidates for leadership roles in the organization. A company may consider having these employees take part in mentorship programs, rotating jobs within the organization, or even furthering their education with courses that will help develop a relevant skillset for the long-term goals of the succession-planning process. 5. Look Externally: While there is significant value in working to develop employees for key roles in the future, an organization should have an open mind and be willing to look elsewhere for a successor/buyer. In some cases, the best candidates for stepping into an ownership role may be found externally. External candidates may already have the necessary experience, knowledge, and qualifications to help fulfill a successful transition. This may be especially valuable in instances where the succession planning period begins on short notice with an urgency to fill a key management role. In most situations, however, a thorough assessment of both internal and external talent is part of an effective succession planning process. 6. Communicate and Implement the Transition Plan: Once the succession plans have been established, it is important to begin communicating the plan to all key stakeholders involved since this takes time. If internal employees will be the successors, they should be aware of the plan and career development path ahead of them. This open communication will also give the employees an opportunity to verify that they are interested in working towards the ownership role within the company and understanding what that means. Once the key employees are on board, the development process should begin with long-term succession in mind. Trial runs can also be beneficial for helping employees test the waters of their future role. This could include shadowing, gradually taking on relevant responsibilities, or even filling in when the owner(s) are out of the office. As the date for the founder’s eventual retirement gets closer, it is a good idea to have some extended and planned absences so the next generation has an opportunity to fill the leadership role before the founder(s) are gone for good. 7. Formalize Plan Documentation: Since succession planning requires various forms of transition and financial implications, it is important to make sure to formalize the process through supporting documentation, including a formal valuation beforehand. The succession planning will likely include the detailed written plan as well as the agreements with key employees and shareholders. In addition to these agreements, company records and documentation should be well organized to help facilitate a seamless transition within the company. As the succession planning documents are formalized and the career development

5 Reasons to Start Your Exit Plan Now

Protect the future of your firm, your clients, and your legacy with SRG’s “5 Reasons to Start Your Exit Plan Now” infographic. This quick-read visual highlights the critical risks of delaying your succession or exit strategy — from burdening your loved ones and losing business value to leaving your team and clients vulnerable. Whether you’re nearing retirement, planning a merger, or simply preparing for the unexpected, this guide reveals why timing is everything. Learn how a proactive exit plan safeguards what you’ve built and ensures a smooth transition on your terms. Download the infographic today and take the first step toward securing your firm’s future with confidence. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download