5 Key Questions for a Stress-Free RIA Succession
February 18, 2025
Selling your firm is a significant milestone that affects your legacy, your team, and the clients who trust you. Whether you're considering selling for succession planning or growth, understanding the key aspects of the process is crucial. To help you navigate this transition with confidence, here are the top five questions every RIA owner should ask before selling their firm.
1. What Does a Partnership Look Like?
Before engaging in a sale, it’s essential to understand how the acquiring firm approaches partnerships.
At The Mather Group (TMG), our approach is collaborative, transparent, and confidential. We prioritize creating mutually beneficial partnerships that:
Expand service offerings for clients
Provide career growth opportunities for team members
Ensure owners capture the value of their hard work while transitioning into the next stage of their careers
Our integration process prioritizes cultural fit, client service excellence, and seamless collaboration. While every transaction varies, a typical sale process takes between 4 to 6 months from initial discussions to closing. Our centralized back office removes operational complexities and serves as a resource, supporting investment management, compliance, HR, finance, and marketing, making the transition smooth and efficient.
2. How Do You Determine a Firm’s Valuation?
Understanding how your firm is valued is key to ensuring a fair and transparent transaction. Our valuation process takes a comprehensive approach, considering:
Team quality
Client demographics
Organic growth
Firm size
While these are core considerations, this is not an exhaustive list as other aspects may play a role in the valuation process. We utilize both relative (comparing similar firms and transactions) and intrinsic (Discounted Cash Flow) valuation methodologies. In some cases, future growth opportunities are factored in, allowing owners to capture additional value beyond current revenues.
3. What Does the Integration Process Look Like?
A seamless integration is crucial for the success of your clients, team, and business continuity. Our integration process is structured, transparent, and supportive.
We work closely with you to transition clients, team members, technology, and systems effectively.
A dedicated integration team provides training and support to ensure a smooth transition.
Each firm receives a customized integration plan, with full integration typically taking 9 to 12 months post-close.
Our portfolio migration process is tax-conscious and aligned with our fiduciary duty, focusing on the long-term success of your clients. We work with our partners to develop a migration plan that meets the needs of clients, keeping in mind current holdings, tax implications, and timing considerations.
4. How Will the Merger Impact Investment Strategies for My Clients?
One of the biggest concerns for RIA owners is how a merger will impact their clients' investments. We provide a globally diversified, index-based approach, offering:
Core model portfolios
Evidence-based stock sleeves
Individual bond strategies
Alternatives
We are also open to incorporating your investment strategies if they align with our client-centric philosophy. Many of our best strategies have been developed by partner firms and integrated into our platform. We take a deliberate, methodical approach to ensure a seamless transition for your clients.
5. What Career Opportunities Exist for My Employees Post-Acquisition?
Your team is an essential part of your firm's success, and their future matters. We provide clear career paths, training, and leadership development to help employees thrive post-acquisition. Employees can transition to new roles within the firm based on skillset, interest, and organizational needs.
We offer comprehensive succession planning, ensuring continued success for your firm, clients, and team members, whether you’re retiring or taking on a new role within TMG.
Ready to Explore Your Options?
Selling your RIA is more than a financial transaction, it’s about securing your legacy, ensuring your clients receive exceptional service, and providing your team with growth opportunities. If you're considering selling your firm and want to ensure a seamless transition, we’re here to help.
Schedule a confidential consultation today to learn more about how TMG can help you achieve your goals.
Need more help?
Contact The Mather Group, your advisor, health insurance professional, or your state’s health insurance assistance program (SHIP) for additional information. SHIP is a national program that offers one-on-one Medicare counseling and assistance to individuals and their families.
Selling your firm is a significant milestone that affects your legacy, your team, and the clients who trust you. Whether you're considering selling for succession planning or growth, understanding the key aspects of the process is crucial. To help you navigate this transition with confidence, here are the top five questions every RIA owner should ask before selling their firm.
1. What Does a Partnership Look Like?
Before engaging in a sale, it’s essential to understand how the acquiring firm approaches partnerships.
At The Mather Group (TMG), our approach is collaborative, transparent, and confidential. We prioritize creating mutually beneficial partnerships that:
Expand service offerings for clients
Provide career growth opportunities for team members
Ensure owners capture the value of their hard work while transitioning into the next stage of their careers
Our integration process prioritizes cultural fit, client service excellence, and seamless collaboration. While every transaction varies, a typical sale process takes between 4 to 6 months from initial discussions to closing. Our centralized back office removes operational complexities and serves as a resource, supporting investment management, compliance, HR, finance, and marketing, making the transition smooth and efficient.
2. How Do You Determine a Firm’s Valuation?
Understanding how your firm is valued is key to ensuring a fair and transparent transaction. Our valuation process takes a comprehensive approach, considering:
Team quality
Client demographics
Organic growth
Firm size
While these are core considerations, this is not an exhaustive list as other aspects may play a role in the valuation process. We utilize both relative (comparing similar firms and transactions) and intrinsic (Discounted Cash Flow) valuation methodologies. In some cases, future growth opportunities are factored in, allowing owners to capture additional value beyond current revenues.
3. What Does the Integration Process Look Like?
A seamless integration is crucial for the success of your clients, team, and business continuity. Our integration process is structured, transparent, and supportive.
We work closely with you to transition clients, team members, technology, and systems effectively.
A dedicated integration team provides training and support to ensure a smooth transition.
Each firm receives a customized integration plan, with full integration typically taking 9 to 12 months post-close.
Our portfolio migration process is tax-conscious and aligned with our fiduciary duty, focusing on the long-term success of your clients. We work with our partners to develop a migration plan that meets the needs of clients, keeping in mind current holdings, tax implications, and timing considerations.
4. How Will the Merger Impact Investment Strategies for My Clients?
One of the biggest concerns for RIA owners is how a merger will impact their clients' investments. We provide a globally diversified, index-based approach, offering:
Core model portfolios
Evidence-based stock sleeves
Individual bond strategies
Alternatives
We are also open to incorporating your investment strategies if they align with our client-centric philosophy. Many of our best strategies have been developed by partner firms and integrated into our platform. We take a deliberate, methodical approach to ensure a seamless transition for your clients.
5. What Career Opportunities Exist for My Employees Post-Acquisition?
Your team is an essential part of your firm's success, and their future matters. We provide clear career paths, training, and leadership development to help employees thrive post-acquisition. Employees can transition to new roles within the firm based on skillset, interest, and organizational needs.
We offer comprehensive succession planning, ensuring continued success for your firm, clients, and team members, whether you’re retiring or taking on a new role within TMG.
Ready to Explore Your Options?
Selling your RIA is more than a financial transaction, it’s about securing your legacy, ensuring your clients receive exceptional service, and providing your team with growth opportunities. If you're considering selling your firm and want to ensure a seamless transition, we’re here to help.
Schedule a confidential consultation today to learn more about how TMG can help you achieve your goals.
Need more help?
Contact The Mather Group, your advisor, health insurance professional, or your state’s health insurance assistance program (SHIP) for additional information. SHIP is a national program that offers one-on-one Medicare counseling and assistance to individuals and their families.
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