The 3 Questions to Answer Before You Choose a Successor

If you’re an advisor thinking about succession, your first question probably shouldn’t be “What’s my book worth?” It should be: “Who will actually take care of my clients on day one?”

That question—and two others—will do more to determine whether your transition goes well than any valuation number. Here they are.

1. Who serves my clients on day one?

Not “who owns the relationship after the deal closes.” Who actually shows up? Who calls? Who knows the client’s daughter’s name, the family business, the estate plan that was updated three years ago?

If the answer is “the acquiring firm’s team,” ask to meet them. Ask how they’re introduced. Ask what happens if the client doesn’t click. Your clients trusted you. They will need a reason to trust whoever comes next. “They bought the practice” is not a reason.

2. What happens to my team?

Your staff knows things that aren’t in the CRM. They know which client needs a call before a statement drops. They know which referral source needs a thank-you note. They know how you like things done.

A successor who doesn’t have a plan for your team is a successor who doesn’t have a plan for your clients.

3. How do I control timing?

Succession isn’t a light switch. You may want to slow down before you stop. You may want to stay involved for a year, or three, or five. You may want to sell part of the practice and keep part. The earlier you start the conversation, the more options you have. The later you start, the more the decision is made for you. Either by health, by family, by circumstance, or by a buyer who knows you’re out of time.

What to do next

If you’re 1–5 years from transition, the first step isn’t a valuation. It’s a clear view of what happens next.

I put together a 12-point succession readiness checklist. No pitch. No obligation. If you’d like a copy, request it below.

Get the 12-Point Checklist

Complete the checklist and email it back to me for a review. If I’m not the right fit, I’ll tell you.

Have a few questions?

Compliance Footer 

Arden Hill Partners is a DBA of Belpointe Asset Management. Investment advisory services are offered through Belpointe Asset Management, a registered investment adviser. This material is for informational purposes only and should not be construed as legal, tax, or investment advice. Business valuation and succession planning involve multiple disciplines, including legal and tax considerations. Clients should consult with their attorney and tax advisor regarding their specific situation.