Plan Your Exit Now: How Advisors Should Transition

AssetMark National Consultant Ryan Alessio spoke on the Advisor Turntable podcast about the need for financial advisors to start succession planning years before they intend to retire. He advised treating a practice as an asset that requires an exit plan to preserve value and ease transfer of client relationships.

Alessio outlined practical steps advisors can take well before retirement. He recommended setting a timeline for exit planning, improving the practice’s appeal to buyers or partners, and beginning the search for a successor early enough to assess fit and build trust.

He highlighted recurring revenue and client segmentation as operational changes that make a practice more attractive in a transition. Recurring revenue examples include ongoing advisory fees and retainer arrangements. Those revenue streams create predictable cash flow that buyers and partners often value and that can produce a clearer valuation.

On client segmentation, Alessio advised classifying clients by revenue, length of relationship and service needs. That classification helps identify which client relationships are likely to transfer smoothly and which will need extra attention during a handover.

Alessio emphasized starting the successor search early and vetting candidates for compatibility with the current advisor and with clients. He recommended a phased handover in which the successor gradually assumes client-facing duties, allowing clients time to adjust and helping preserve relationships.

He also discussed common reasons advisors delay succession planning. Day-to-day client work, uncertainty about timing and discomfort with succession conversations can push planning to the back burner. Alessio noted that, as a result, some advisors reach retirement without a clear plan to transfer client relationships or to capture the practice’s full value.

Drawing on work with hundreds of firms, Alessio suggested concrete tasks: inventory all revenue streams; classify clients by objective criteria; formalize agreements with staff or partners; and document processes so a successor can step in with minimal disruption. He said documenting client service workflows and transfer steps reduces uncertainty for both seller and buyer.

The podcast episode is available in audio and video formats and can be found on major podcast platforms. The discussion is provided for informational purposes and does not constitute investment advice or an offer to buy or sell securities.