The SEC’s Marketing Rule Sweep: Endorsements in Advisor M&A (Ep. 29)
Listen to the Episode Read the Show Notes Endorsements and the SEC Marketing Rule in Advisor M&A Regulatory scrutiny is evolving, and RIAs involved in acquisitions or succession transitions are starting to see a new area of exam focus: how the SEC’s Marketing Rule endorsement provision may apply to certain client transition communications. In this episode of The Fine Print, SRG General Counsel Todd Fulks is joined by Christine Ayako Schleppegrell, Partner at Morgan Lewis and former SEC attorney, for a timely discussion on what firms are seeing in exams and deficiency letters, and why this issue is emerging now. You will hear how a rule many advisors associate with testimonials and advertising is beginning to surface in the M&A transition context, and what firms can do to stay prepared. Episode Highlights Why endorsements are starting to come up in M&A-related exams Todd and Christine explain how some SEC staff have begun examining whether certain client transition communications could be interpreted as endorsements, triggering Marketing Rule disclosure expectations. How the Marketing Rule applies beyond traditional marketing The conversation highlights that the endorsement provision is not limited to social media or advertising campaigns. In some situations, it may apply to successor-related messaging and client transition outreach tied to a transaction. What regulators are asking for right now Christine shares insight into what SEC exam teams have been requesting, including how firms handle disclosures and whether they have a documented compliance approach around these communications. Why this issue is emerging unevenly across regions The episode discusses how this focus has surfaced more in certain SEC regional offices so far, and why firms should be aware even if they have not encountered it directly yet. Disclosure language and documentation considerations Todd outlines the importance of carefully structured disclosure language when communications could be construed as an endorsement, and why documentation matters during regulatory review. Practical steps RIAs can take going forward The episode closes with actionable guidance for firms involved in M&A, including reviewing transition letter templates, aligning compliance early in the deal process, and building repeatable communication frameworks that reduce exam risk. Who is Featured in This Episode Todd Fulks, JD, BFA (SRG General Counsel) Christine Ayako Schleppegrell (Partner, Morgan Lewis; Former SEC Attorney) Key Takeaway The SEC’s Marketing Rule is not confined to advertising alone. As endorsement-related questions begin appearing in some advisor M&A exams, firms should approach client transition communications with greater care, disclosure discipline, and compliance awareness. For RIAs considering a sale, acquisition, or succession transition, this episode offers timely clarity on an emerging regulatory issue.
Selling Your Advisory Practice to a Friend | Financial Advisor Guide
A look at valuation risks, emotional dynamics, and why familiarity doesn’t ensure a smooth transition. Why Financial Advisors and RIA Owners Should Approach Friend-to-Friend Sales With Caution Among financial advisors, RIAs, and independent wealth management firm owners, one of the most common assumptions about succession planning is that selling to a friend—or someone you’ve known in the industry for years—will naturally produce the easiest, safest, most client-friendly transition. On the surface, it makes sense. This “friend-buyer” already knows you, understands your service model, and may share a similar philosophy. It feels familiar. It feels efficient. And perhaps most importantly, it feels safe. But as SRG has seen across thousands of advisory practice transitions, friend-to-friend succession is often more complex, more emotional, and financially less beneficial than sellers expect. Familiarity can make the process feel smoother, but it rarely makes the process smoother. For financial advisors and RIAs responsible for protecting clients, staff, and the long-term value of their practice, it’s essential to understand why. Why Advisors & RIAs Believe This 1. Trust Feels Like a Substitute for Due Diligence It’s natural to believe that trust eliminates the need for thorough vetting, formal valuation, or structured negotiation. But in most cases, trust fills the space where clarity should be. 2. Advisors Overestimate How Well They Know Their Friend’s Business Capabilities Knowing someone socially—or even professionally—is not the same as understanding: their financial capacity their operational readiness their leadership skills their experience with client transitions their ability to manage a mature book Are You Ready to Exit? Download SRG’s Seller Readiness eBook Selling your business can seem like a daunting task. Our Seller Readiness E-Book identifies crucial elements for you to think about as you begin the process of finding your successor. 3. Sellers Want to Avoid Conflict It feels easier to sell to a friend than to engage in a competitive buyer search. Many advisors fear awkwardness around pricing, financing, or negotiating. 4. The “Easy Path” Narrative Is Emotionally Appealing But the easiest path is not always the best path for your clients, staff, or family. The Reality: A Friend-Buyer Is Not Automatically the Best Successor Selling your financial advisory practice or RIA is one of the most important business and personal decisions you’ll ever make. It impacts: your retirement your family’s financial security your legacy your team your clients your community Choosing a successor based solely on familiarity can introduce substantial risks. Here’s what financial advisors need to understand. 1. Friend-to-Friend Sales Often Skip Critical Conversations — Until It’s Too Late Transitions fail when expectations go unspoken. Friend deals are notorious for: unclear valuation expectations mismatched client service philosophies unspoken assumptions informal negotiation inadequate documentation emotional sensitivity around terms SRG highlights that the biggest cause of seller regret is not price — it’s the lack of early clarity. Friendship creates comfort, and comfort suppresses necessary questions. 2. A Good Advisor Doesn’t Always Make a Good Successor The qualities that make a friend enjoyable do NOT automatically translate into: strong leadership practice management capabilities financial readiness client communication skill retention strategy operational discipline investment in staff Successions fail not because the buyer is a bad person — but because they are the wrong fit. 3. Selling to a Friend Often Results in a Lower Valuation This is the part most advisors don’t expect. Because both parties want to “keep things simple,” friend-to-friend deals commonly involve: softer pricing uncompetitive multiples extended seller financing minimal cash at closing high transition obligations longer earn-outs Why? Because the seller feels forced to treat the buyer as a friend rather than as a counterparty. Meanwhile, advisors who list their practice confidentially typically receive more offers, stronger terms, and higher valuation due to competitive market pressure. Friendly deals feel fair.Competitive deals are fair. 4. Emotional Dynamics Can Damage the Relationship Friendship does not protect you from conflict — it amplifies it.During the sale of a financial advisory practice or RIA, uncomfortable questions arise: Why is this term so strict? Why didn’t you tell me about this risk? Why is your attorney pushing for that clause? Why is the valuation higher than I expected? Why won’t you offer a longer note? These questions feel heavier when the buyer is a friend. SRG’s internal transition case files include examples where: friendships were strained team relationships were damaged deals fell apart late-stage client transitions suffered In nearly all cases, the breakdown occurred due to lack of structure, not lack of goodwill. 5. Many Friends Don’t Have the Capital to Execute the Deal Properly This is a practical but critical limitation. Friend-buyers often lack: liquidity financing acquisition experience personal credit strength operational capacity confidence with client retention strategies The result? The seller absorbs more risk. larger seller notes longer payout terms higher earn-out dependence longer transition involvement reduced valuation certainty 6. Staff and Clients May React Differently Than You Expect Financial advisors often assume, “My clients and employees will be relieved I chose someone familiar.” Sometimes that’s true. But often: clients question whether the friend is the best advisor staff worry about professional credibility the team is unsure about new expectations clients fear cultural mismatch When a successor is chosen through a formal, structured, well-communicated search, clients and staff gain confidence, not confusion. 7. Selling to a Friend Can Limit Optionality — Permanently A premature commitment to a friend-buyer eliminates: market pricing multiple deal structures diverse buyer types varied financing options culture-aligned interested parties timeline flexibility tax-efficient strategies Should Advisors Avoid Selling to a Friend Entirely? Not at all. Friend or colleague buyers can be excellent successors when the process is structured professionally. SRG supports many successful friend transitions both as a neutral facilitator and as a sell-side advocate. When executed correctly, familiarity enhances trust — it doesn’t replace structure. Conclusion: Friendship Is Valuable — But It Is Not a Strategy A friend may become an excellent successor. But they are not the best successor simply because they are familiar. Smart financial advisors and RIAs recognize that: value must be
How Firms Use Equity Stakes to Retain Top Advisor Talent, Drive M&A
By: Tobias SalingerPublishing Date: January 27, 2026 Internal transactions in which financial advisors buy equity in their firms represent a growing share of wealth management M&A deals, a new study found. Those deals boost advisors’ compensation via stakes in expanding firms, making them more likely to stay long-term. And they’re becoming more popular, according to a webinar last week held by consulting firm Succession Resource Group on its annual M&A study and hosted by founder and CEO David Grau and Parker Finot, its director of transaction advisory services. The study analyzed data from 171 transactions in 2025, including firms with about $14 billion in total client assets that Succession Resource advised, as well as other deals that used financing from Oak Street Funding and PPC Loan, which both collaborated in the study. Across M&A deals, a small group of highly competitive buyers continues to drive record valuations, leading to new highs in transaction volume. The number of potential acquirers per seller plummeted last year to 61 from 85 in 2023 and from 66 in 2024. Grau noted four main M&A trends from 2025: private equity investors’ impact on deal sizes, overall higher valuations, a smaller pool of possible buyers and a rising number of internal deals. “That’s not noteworthy in the sense that there’s more succession planning taking place,” he said. “But it’s noteworthy because most of these that we’re seeing are not supporting a partner retiring, and younger gen-two, gen-three folks buying them out. That happens too, but that’s separate. These are just straight-up purchases, buying into a firm that these advisors are working at and it’s happening a material amount of the time where we want to take note of it and share that with you today.” To read the full article, please visit: https://www.financial-planning.com/news/how-m-a-is-rewarding-top-financial-advisor-talent Disclaimer This article was first published by Tobias Salinger The original article can be found here. All rights to the original content are held by FinancialPlanning.com.
2026 Advisor M&A Review
Watch the Replay 2026 Flagship M&A Highlights Webinar for RIAs and Financial Advisors Powered by SRG’s 10th annual review of completed M&A transactions, our Flagship webinar distills what actually happened in the market into clear, decision-ready benchmarks for RIAs and financial advisory firms. Built on the industry’s most comprehensive dataset of verified, closed transactions, this session delivers highly accurate valuation benchmarks and deal insights that go far beyond self-reported surveys. You will learn what is driving multiples, where buyer demand is strongest, and how terms are shifting as the market evolves. We will also break down the valuation metrics advisors care about most, including revenue multiples versus EBITDA multiples, and explain when each applies based on business model, size, profitability, and growth profile. Valuation is only part of the story. This webinar also dives into the deal structures that determine what sellers actually take home, including cash at close, seller notes, and other components that can significantly impact real outcomes. You will leave with clarity on what buyers are prioritizing, what quality firms are commanding in today’s market, and how to position your business for a stronger result. Led by David Grau, Jr. MBA (CEO) and Parker Finot (Director of Transaction Advisor Services), this is a data-backed, practical session designed to help you make smarter decisions with more confidence. Whether you are preparing to build value, buy, sell, or accelerate growth, this will be one of the most actionable hours you can invest in your 2026 planning. Sponsored by Data Contributors Related Resources Download the Slide Deck: Download Deck→ 2025 M&A Infographic Download this infographic→ 2025 M&A Webinar Watch Webinar Recording→ What’s Next? Get A Valuation We offer a variety of solutions and turnaround times to fit your needs. Join myCompass Our membership club grants you inside tips and opportunities to grow. Review our Seller Services We’re here to ensure you secure the best buyer, price and terms.
The Exchange: Entity Structure and Why It’s The Backbone of Your Advisory Firm (Ep. 28)
Listen to the Episode Read the Show Notes The SRG Exchange: Entities and Entity Maintenance Entity structure is not just a legal formality. It plays a major role in how an advisory firm grows, shares ownership, and transitions leadership. In this episode of The SRG Exchange, SRG’s consulting team and general counsel unpack why entities have moved from a “set it and forget it” task to a core piece of business strategy. You will hear how entity decisions influence everything from equity sharing and internal succession to mergers, lending, disputes, and value building. Episode Highlights Why entities are now strategic, not administrative The team discusses how entities used to be treated as a quick setup for liability and taxes, but have become foundational for firms with growth plans, W2 employees, equity sharing, and long-term succession goals. Entity structure supports retention and equity pathways A properly structured entity can create divisible ownership units or shares, enabling retention strategies and giving next-gen leaders a pathway to buy, earn, or convert into real equity. S-corp versus LLC taxed as partnership The group compares the tradeoffs of rigidity and flexibility across entity types. An S-corp can be effective in specific scenarios, but many firms pursuing mergers or complex ownership structures benefit from the flexibility of an LLC taxed as a partnership. Entity structure impacts M&A, mergers, and equity swaps Entities do not only matter for succession and equity sharing. They also shape peer-to-peer acquisitions, mergers, partner buyouts, and equity swaps. Poor structure or conflicting agreements can reduce tax strategy options and create deal friction. Why entity maintenance matters Entity documents need to reflect reality. The team shares how outdated operating agreements and inconsistent ownership schedules can create serious issues during valuations, due diligence, disputes, or even basic financing. What maintenance actually includes Maintenance is more than annual state filings. It includes documenting changes, capturing ownership updates, maintaining minutes, and ensuring titles and governance terms stay consistent over time. The real risk: it is not an issue until it is The group explains why entity problems often stay hidden until a triggering event happens, such as an owner dispute, a loan request, a merger, or litigation. When that happens, outdated documents become evidence. How to approach entity work alongside succession planning Rather than doing entity work in isolation, the team recommends aligning structure with the firm’s goals first. That includes what the founder wants to do long-term, whether the path is internal succession, external sale, mergers, or ensemble building. Who is Featured in This Episode Nicole Frey, CFP® David Grau Jr., MBA Julia Sexton (Sullivan), CVA Ryan Grau, CVA, CBA Kristen Grau, CPA, CVA, CEPA Parker Finot Todd Fulks, JD, BFA Key Takeaway Entity design and maintenance are foundational. When done strategically, they make it easier to share equity, retain talent, execute transactions, and protect long-term value. When ignored, they create friction at the exact moments when a firm needs clarity the most.
Should Financial Advisors List Their Practice? The Truth Behind RIA Practice Listings
The Truth About Listing a Financial Advisory or RIA Practice — And Why It’s a Strategic Advantage, Not a Weakness. For many financial advisors and RIA owners, the idea of “listing” their practice triggers an immediate sense of resistance. It can feel public, vulnerable, and even risky. Some envision a Craigslist-style listing that signals desperation. Others fear clients or staff discovering the news prematurely. And nearly every advisor has heard some version of the belief that good practices don’t need listings — the right buyer will just appear. These assumptions have created one of the most pervasive misconceptions in the financial advisory industry. Yet, as SRG’s extensive experience shows, listing your practice is not a last resort — it’s a leadership decision. A strategic accelerator. A valuation maximizer. A risk-reducing mechanism. In today’s competitive advisory marketplace, listing a practice confidentially and professionally is one of the most effective ways to uncover qualified buyers, increase value, and protect clients. Let’s break down the real truth behind the myth. Why the Myth Exists in the Financial Advisor & RIA Space 1. Misunderstanding What “Listing” Actually Means Many advisors imagine a public posting revealing: their name their AUM their client list their revenue their intent to exit In reality, professional listings (like those SRG facilitates) are private, controlled, gated, and fully confidential. Are You Ready to Exit? Download SRG’s Seller Readiness eBook Selling your business can seem like a daunting task. Our Seller Readiness E-Book identifies crucial elements for you to think about as you begin the process of finding your successor. 2. Fear of Optics Financial advisors and RIA owners often pride themselves on stability, trust, and continuity. They fear that listing creates the perception of instability. 3. Desire for Simplicity Selling to a colleague or local advisor feels easier — even if it lowers valuation or increases risk. 4. Believing “Good Practices Sell Themselves” This mentality reinforces the idea that a listing is only for advisors struggling to find a buyer. Each of these fears is rooted in emotional instinct — not reality. The Reality: Listing Is One of the Strongest Strategic Moves an Advisor Can Make 1. A listing is confidential, controlled, and entirely seller-driven. A proper advisory practice listing is not public. SRG’s listing process is intentionally designed for discreet, confidential outreach. Nothing is posted publicly. Nothing is shared without a signed NDA. Your name, your client list, your financials, and your intentions are all protected until you decide otherwise. A listing is not a “for sale” sign — it’s a structured, professionally managed expression of interest designed to attract qualified buyers, not curiosity seekers. 2. Listing expands your buyer pool — and competition directly increases value. One of the biggest risks in a sale is limiting yourself to too few candidates. When sellers only talk to their friend, their junior advisor, or a single referral, they drastically reduce competitive tension — which often translates to: lower upfront value less favorable terms weaker client transition support longer seller obligations A listing introduces strategic choice. It brings in candidates you would never meet otherwise — candidates you can compare, interview, and evaluate. It gives you leverage and a clearer understanding of what the market is willing to pay. 3. Listing doesn’t lock you into anything – it gives you optionality Many sellers think that once they list, they’ve “started the clock” or agreed to sell. Not true. Listing simply opens the door. You can: proceed delay pause or walk away entirely You control the pace. You control the communication. You choose when — or if — you accept any offer. A listing is optionality, not commitment. 4. Listing allows SRG to screen out 90% of unqualified, unprepared, and unaligned buyers. Without a structured process, sellers are forced to field calls from anyone with a passing interest — tire-kickers, undercapitalized advisors, mismatched cultures, and buyers who lack financing. With SRG managing the listing, you never deal with: buyers who don’t meet financial requirements advisors who only want the “top 20% of your book” competitors fishing for information firms with no capacity for transition management This prevents wasted time, misalignment, and unnecessary exposure. 5. Listing allows you to shape the narrative, not react to it. When you proactively list with a structured process, you become the pilot — not the passenger. You determine: How buyers perceive your practice How clients are introduced How staff is prepared How your brand and legacy are represented What strengths are highlighted What risks are managed Without a listing, buyers create their own narrative — usually based on incomplete or inaccurate assumptions. Listing is how you take control of your story. 6. A listing is a sign of good business ownership – not desperation Strategic buyers respond best to strategic sellers. Listings demonstrate that you are intentional, organized, committed to continuity, financially informed, and proactive. This increases confidence – which increases deal quality. 7. A Well-Crafted Listing Attracts Sophisticated Buyers A high-quality listing is not a generic advertisement. SRG creates a professionally structured profile backed by: Certified valuation Financial review Client demographic analysis Transition planning strategy Risk-adjusted value modeling Deal structure guidance This positions your practice as a premium opportunity, not an anonymous listing. In fact, many of the highest-value sales SRG has executed in the past decade started with a listing — because listings generate healthy competition that private conversations cannot. Conclusion: Listing Is Not a Sign of Weakness — It’s a Sign of Intentional Leadership Advisors don’t list because they’re weak. They list because they are: Strategic Responsible business owners who plan rather than react protective of their clients committed to a good transition honoring their family’s financial future protecting the legacy of their firm – including the employees who helped build it maximizing value reducing risk taking control of their exit A listing is not an exit — it’s the beginning of a well-managed, thoughtful, confidential exploration of your options. Used correctly, it positions sellers for the strongest valuation, best buyer, and smoothest
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The Exchange: The Truth About Advisor Contingency Planning (Ep. 27)
Listen to the Episode Read the Show Notes The Truth About Advisor Contingency Planning In the first-ever episode of The SRG Exchange, SRG’s consulting team comes together for a candid discussion on one of the most overlooked and essential components of running a financial advisory firm: contingency planning. Drawing from real client experiences and day-to-day advisory work, the team breaks down what advisors often misunderstand, what regulators actually expect, and what a truly functional continuity plan must include. This conversation sheds light on the operational, legal, and relational challenges that surface when a plan fails, and offers practical steps to help advisors protect clients, revenue, and family long before an emergency occurs. Why Contingency Planning Still Falls Short The episode opens with a direct reality check. While nearly every advisor knows they should have a contingency plan, very few have one that would truly work under pressure. The team discusses common gaps they see across the industry, including: plans that exist only on paper and do not reflect firm reality unclear successor instructions incorrectly structured agreements that fail when tested BD or custodian forms mistaken for full plans They explain why these gaps become critical risks, not just for compliance, but for clients, staff, and family members who are left scrambling. Understanding What a Real Plan Looks Like From valuation considerations to internal decision-making authority, the team outlines the building blocks of a functional, actionable plan. Key insights include: why a contingency plan must tie directly to a firm’s legal entity structure the importance of identifying who actually has the authority to take over why buy-sell agreements are not always enough how entity maintenance impacts continuity readiness the role of service agreements, compensation, and communication plans The takeaway is clear. Effective contingency planning is not one-size-fits-all. It must be tailored to the firm’s ownership structure, internal roles, and growth stage. Lessons From the Field The discussion includes real scenarios pulled from SRG’s consulting work, including both successes and cautionary tales. Advisors will hear: what happens when documentation does not match operational reality how unexpected disability or death can affect valuation and transition options why even well-intentioned plans break down during crisis how firms that plan proactively preserve value and avoid chaos These examples ground the conversation in real-world impact and show exactly how preparation, or lack of it, plays out. Practical Guidance for Advisors The team shares tangible steps advisors can take to strengthen or build their plan, including: conducting a full review of existing agreements validating successor roles and responsibilities documenting operational continuity steps maintaining updated books, records, and entity documents ensuring clients know the firm has a plan in place They also discuss how often plans should be revisited, and why regular maintenance matters just as much as initial creation. Conclusion: Protecting What Matters Most The episode closes with a reminder that contingency planning is not just a compliance requirement. It is a fiduciary responsibility. By proactively addressing these issues, advisors protect their clients, their staff, the value of their firm, and the people they care about. The key takeaway: a contingency plan is not complete until it works in real life, under real pressure. Advisors who invest the time to get this right are better positioned to navigate the unexpected and maintain stability for their business and everyone who depends on it.
RIA Leaders: Top 10 firms by number of financial advisors for 2025
By: Tobias SalingerPublishing Date: November 25, 2025 Whether or not publicly traded wealth management firms disclose their headcounts of financial advisors in their quarterly earnings, the number represents a closely watched industry metric. So the below rankings of fee-only registered investment advisory firms with the most advisors in Financial Planning’s annual RIA Leaders study reveal which companies are hiring and training at the largest volume. Executives that have led giant wealth management firms such as Ameriprise, Wells Fargo Advisors, Morgan Stanley and Merrill to remove their quarterly headcount figures frequently argue that the number of advisors is no longer as important as the amount of client assets, organic growth, productivity or, of course, revenue and profit. On the other hand, advisor headcount affects each of those other figures. And the firm with more advisors than any other, LPL Financial, proudly shared the size of its ranks of 32,128 advisors at the end of the third quarter. Fee-only RIAs such as Savant Wealth Management, Moneta Group Investment Advisors and EP Wealth Advisors don’t approach that level of scale. However, they’re operating in a field with a stagnant overall headcount of advisors, a massive succession challenge amid looming retirements and a possible hiring shortfall in the face of growing consumer demand for advice. Technology may solve part of those problems, said David Grau, the CEO of consulting firm Succession Resource Group. He compared the potential of technology like artificial intelligence to the difference between moving a big pile of wood with or without a wheelbarrow. While there’s “obviously a need” to hire more advisors, that dearth of incoming talent isn’t “as bad or as out of proportion as we have made it out to be in the past,” due to the AI and other tech, Grau said. To read the full article, please visit: https://www.financial-planning.com/list/fee-only-rias-with-the-most-financial-advisors-in-2025 Disclaimer This article was first published by Tobias Salinger The original article can be found here. All rights to the original content are held by FinancialPlanning.com.