James BodeHow to Protect Clients, Preserve Trust, and Plan for What’s Next In Your Succession Plan
Selling a financial advisory practice is one of the biggest decisions an advisor will ever face. It isn’t just about a valuation multiple or closing a deal. It’s about the people you’ve served for decades, the identity you’ve built as their trusted advisor, and the legacy you want to leave behind.
For many advisors, the idea of succession planning or selling their firm comes with hesitation, I’d say even fear. But waiting too long or avoiding the conversation altogether can put your clients, your business, and your legacy at risk. With the right approach, however, selling doesn’t have to mean letting go. Done well, it can be the start of a stronger future for both you and the individuals and families who rely on you.
Why Advisors Delay Succession Planning
As financial advisors, we’re often the worst when it comes to taking our own advice. We’ll tell our clients they have to plan for retirement, for their legacy, and then hold off from doing that work for ourselves. Despite knowing it’s important, many advisors put off business continuity and succession planning.
Which of these excuses have you given yourself?
“I’m too busy serving clients.” Day-to-day demands crowd out long-range planning. Serving clients feels urgent, while succession feels optional, until it isn’t.
“I don’t have a clear successor.” Many solo or small firms don’t have a next-generation advisor in place, leaving owners unsure of what comes next.
“Financing is tough.” Internal successors often lack capital, which pushes owners to delay or hope for a different outcome.
“I have no idea how to handle compliance.” The complexity of compliance and fear of missteps can stall progress.
“I don’t want to let go.” For many advisors, the firm isn’t just a business; it’s part of who they are. Letting go feels like losing part of themselves. Admitting that this is the case is the first step to finding a solution.
“I don’t want to think about ‘the end’.” Thinking about succession often feels like confronting retirement or the end of a career. What will the retired advisor do with their time? It’s uncomfortable to think about this, so it’s postponed.
What Your Fear of Succession Planning Is Costing
But waiting has costs. Client relationships weaken without a plan. Energy wanes with age (for advisors and for clients), making transitions harder. Technology and regulations evolve, leaving some firms behind. And perhaps most importantly, clients are left wondering: “What happens when my advisor is no longer here?”
What Clients Want Is Transparency and Communication
Some advisors think that they need to keep their succession plans secret, as though to protect their clients from the fact that they are thinking about the future. To the contrary, clients have an (often unspoken) expectation that their advisor should be planning. Telling clients that you are planning for your practice’s future, and your own retirement will put their minds at ease.
Clients know every transition brings change. The risk is that if the changes feel negative, they will leave. They will also leave if they think that you don’t have a succession plan! Advisors who position their succession as a step forward, not just a change in ownership, give their clients confidence. If you are looking to sell (or to transition to an internal successor), one of the most important matters to focus on is how the client experience will be affected. Clients must be assured that their experience will either remain unchanged (if they are generally pleased with the experience you provide), or that it will improve.
How to Communicate Change with Confidence
Change Is Inevitable, And How You Share Your Story Matters
Transitions almost always come with changes in investment strategy or process. For example, at Beck Bode we introduce individual equities into portfolios, essentially building customized ETFs or mutual funds for clients. That kind of shift can feel significant, but it doesn’t have to be unsettling if it’s explained well.
The key is storytelling. Regardless of what the changes are in your specific transition, it’s important for you, as the advisor, to clearly articulate:
- What will change.
- Why the change is happening.
- How it benefits the client.
When framed as a thoughtful, intentional upgrade, backed by a strong investment team, a strong service team, and strong leadership, clients are more likely to embrace the change. Without a story, however, even small shifts can create doubt.
Building Trust Between Buyer and Seller
Client trust during a transition starts with trust between the buyer and the seller. Sellers can’t simply tell their clients to “trust” the new firm; that trust must be demonstrated. Trust is built through open conversation, shared values, and lived actions.
In our experience, successful transitions involve:
Time. Buyers and sellers building a relationship 6–12 months before the deal closes.
Transparency. Buyers sharing not just business details, but also their personal “why” for being in this profession.
Authentic endorsement. Sellers communicating to clients why they sincerely believe the buyer is the right fit. When the selling advisor invests with the buyer, this additionally signals strong support for the firm.
Consistency. Buyers following through on the expectations set during the transition.
Protecting Your Legacy & Staying Connected
Many advisors fear losing their identity once they sell. After all, their relationships with clients often go beyond business. Often we hear advisors cite that their clients have become their friends. We also know this from personal experience. That’s why a strong succession plan needs to include ways for the seller to remain engaged, if they choose.
Every advisor is different: some advisors prefer a clean break whereas others stay involved in client relationships for years, even after operational responsibilities are long removed. The best buyers will allow sellers flexibility to choose by offering options that respect the seller’s legacy and their personal goals.
The real measure of a successful transition isn’t only valuation, it’s whether the seller can look back 5–10 years later and say: “That was the right decision for me, my clients, and the future of the firm.”
The Risks of Delaying Succession Planning
Back to Delaying Succession Planning
It’s clear by now that delaying succession planning may feel easier in the short run, but it comes with real risks. It bears repeating that the risks include:
Losing control. Without a plan, you, your clients and staff are left vulnerable.
Potential for diminished valuation. Advisors often assume waiting will increase firm value, but fatigue, outdated systems, or unexpected health issues can lower it.
Client attrition. Clients who sense uncertainty often look for stability elsewhere.
Reduced transition energy. Successful handoffs require stamina — something harder to summon late in a career.
The worst-case scenario is if you die without an assigned successor and a business continuity plan, that you lose your life’s work, the value of your business. Consider the impact that would have on your family and the disruption it would cause for your clients, their families, and for your team. So, just as advisors encourage their clients to plan for retirement and legacy, advisors must also practice what they preach.
Don’t Wait to Secure Your Legacy
Selling your firm isn’t about losing what you’ve built; it’s about protecting it. The right succession plan strengthens client relationships, ensures smoother investment transitions, and honors the legacy of the seller.
The hardest part is starting the conversation. But waiting too long only makes the path harder for you and riskier for your clients. By addressing fears head-on, sharing your story, and finding the right partner, you can ensure that when the time comes, you’ll look back with confidence and pride.
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If you’ve been putting off succession planning, ask yourself, “What am I waiting for?” Your clients, your team, and your legacy deserve clarity today. Contact us for a confidential conversation. This is a no-obligation offer, simply an opportunity to exchange ideas with people who understand the complexity of succession planning firsthand!
James Bode is Managing Partner at Beck Bode, a deliberately different wealth management firm with a unique view on investing, business, and life.
FAQs About Advisor Succession Planning
Every advisor’s journey toward succession looks a little different, but the same questions tend to come up along the way. Advisors often ask what will happen to their clients, how they can communicate the transition with confidence, and whether there’s a way to stay connected even after they sell. The answers below come from real conversations I’ve had with advisors who have faced these same decisions and found ways to protect the people and principles that matter most.
What is advisor succession planning?
Succession planning is about preparing for what comes next while protecting what you’ve built. It isn’t just a business transaction. It’s a plan that helps ensure your clients are cared for, your team is supported, and your values continue long after you step back. Done well, succession planning strengthens the firm you created instead of replacing it.
When should I start thinking about succession?
It’s best to begin the process well before you think you’ll need it. Many advisors start planning about five years before they expect to retire, but it’s never too early to begin the conversation. Waiting too long can limit your choices, reduce your valuation, or leave your clients uncertain. Planning ahead helps you make decisions from a position of strength rather than urgency.
How do I find the right successor or buyer?
The right fit is about more than numbers. It’s about shared values, trust, and a belief in how clients should be served. The strongest transitions happen when both the buyer and the seller view the relationship as a partnership and when both are committed to improving the client experience.
What will change for my clients?
Every transition involves some level of change, but it should never come at the cost of client confidence. Clients want to know that the care and attention they’ve come to expect will continue, and that any change will benefit them. When you explain what’s changing, why it matters, and how it will help, clients are far more likely to embrace the transition.
Can I stay involved after the sale?
Many advisors choose to remain connected after selling. Some attend meetings or help with introductions, while others prefer to step away completely. A strong succession plan gives you options so you can stay engaged as long as you wish, knowing your clients are in good hands.
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If you’ve been putting off succession planning, consider this your sign to start the conversation. The earlier you begin, the more flexibility you’ll have, and the easier it becomes to protect your clients, your business, and your legacy.
Contact us for a confidential conversation about what comes next.