Let’s be honest, gaining an equity stake in a successful advisory firm is a bold and big career move. But if you’re a next-gen advisor with real ambition, the better move is to consider it more as buying into a firm, incrementally, and as part of a long-term vision for strategic growth. Real succession doesn’t happen overnight; in fact, it’s nearly impossible to pull off that way.
Internal Succession Isn’t a Pipe Dream. It’s a Strategy.
The most forward-thinking advisor-owners already understand that building a durable firm means bringing next-generation owners to the ownership level. However, some advisory firms feel stuck in what I call “delay mode”—or feel like they’re just paying themselves with their own money. Many founding owners become overwhelmed, convincing themselves that succession is too complex, the timing is never quite right, or that their potential successors simply aren’t ready to take the reins.
There’s an opportunity in the struggle. Instead of being a passive observer, waiting for a seat at the table, think of your role as a proactive partner who knows the value you bring and is ready to make things happen.
Start With the Real Conversation
If ownership is one of your career goals (and it should be), make that known early. This can even be brought up when you are interviewing with a new firm. If a firm can’t even entertain the conversation, it might not be the place you can build the future you envision.
Once you are in the firm, don’t wait for the equity talk to magically appear on the agenda. It won’t, work gets in the way. It’s up to you to keep the conversation going. Be clear, professional and relentless. Ownership doesn’t just go to the most senior person, it’s earned by those who consistently show up, elevate their contributions and align their personal impact with the broader vision of the firm.
What you bring to these discussions is also key. Bringing data, stories of impact and long-term visions for the firm are imperative. Just remember that you’re not just asking for a piece of the pie; you could make that pie bigger.
Once the conversation is underway, your next move is to show them you already think like an owner.
Own It Before You Own It
When it comes to business ownership, you need to consider elements beyond control and profit shares. Keep in mind the overall investment and the weight of the responsibility.
If ownership is your goal, develop an “ownership mentality” from day one; get involved, ask questions, and take on responsibilities beyond your role. Develop an understanding of how all aspects of the business work together to drive growth and value, not just production and revenue.
As we’ve said, achieving ownership is not about buying out existing ownership and claiming it for yourself; it’s about buying into a team of equitized leaders . Advisory firms thrive on multi-generational ownership teams, and it shows in their elevated growth rates and values. Be prepared to start small and gradually grow your equity as part of a collective.
Collaborate with other next-gen leaders on your team to cement that partnership. Appreciate your individual strengths and how you can effectively leverage them to create a strong leadership team. Success relies on an alignment of values and vision to create a team working toward a common goal to achieve business priorities.
Educate Yourself (and Your Boss)
The most common reason owners fail to follow through on their succession promises is that they don’t know where to start. When the time comes to move the ownership conversation along, coming to the table with information and next steps sparks action. Have the answers ready for some of the most common questions. At FP Transitions, we hear them every day as we guide advisors through internal succession planning:
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How much ownership is typically transferred at the start?
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How much control am I giving up?
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What do the ownership agreements look like?
By doing the legwork ahead of time to learn about the process and benefits of equity ownership, you can help make the decision less daunting. Luckily, the information you need is just a click away.
Press Go
When you’ve secured the “yes,” it’s time to focus on a few key elements to flesh out your plan and put it in motion.
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Equity Valuation: Know the numbers so you can plan your buy-in. It’s also important to monitor equity value as the business grows.
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Ownership Roles: Everyone needs to be clear on expectations, roles and responsibilities.
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Structure and Profitability: You’ll need a business that can support internal succession financially and operationally, ensuring that profitability is intact.
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Financing: Understand the options here and how to use them. Each deal is unique and there are several resources available. Common strategies are seller financing, bank financing or a combination of the two. Both strategies involve borrowing against future profits.
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Documentation: For plans and partnerships to succeed, they need to be put in writing. Plan documents, organizational charts, and ownership agreements should all be recorded and signed where appropriate.
Whether at square one or square five, expert guidance is crucial for navigating the succession process and avoiding costly mistakes.
Succession Is a Long Game. And That’s the Point.
This is a long journey that isn’t focused on a quick win. A well-structured ownership track is about sustainability, legacy and the kind of career that has lasting impact.
If you’re ready to go from top advisor to strategic partner, start acting like one. Be the spark that turns “not yet” into “let’s go.” We are in an era where ambitious, next-gen advisors are more needed—and more valued—than ever. If that’s your ambition, then buying in is your move.
We believe the most enduring businesses are built by teams that share ownership, culture, and a commitment to growth.
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