Sell Your Practice!
BY GIL WEINREICH
CLS whitepaper shows the math for M&A to be unfavorable,
and the benefits of continuing the business through a junior
Selling your advisory prac- tice—a move stressed in a ceaseless torrent of industry advice—may be hazardous
to your wealth.
Broker-dealers, roll-up firms and
others who benefit from keeping
or acquiring managed assets usu-
ally frame the necessity of succes-
sion planning in terms of the risk
that clients won’t commit to a firm
whose principal is aging.
Therefore, the reasoning goes,
advisors ought to sell for the good
of the clients and to cash out their
A new white paper and advisor survey by CLS Investments,
an ETF-based third-party money
manager, has a different take altogether on advisor succession planning, arguing that advisors lose out
financially through an outright sale
of the business.