An internal succession involves transitioning ownership, management and clients to other partners or employees of your firm.

This may be an appropriate option for advisors who want to continue to remain involved in their business over time and strongly value its independence.

An internal succession also has the potential to increase the motivation and loyalty of employees as they identify their long-term role in the business as eventual owners and managers.

Key considerations for this approach include:

Have you identified a succession candidate(s)?

Do they have an entrepreneurial spirit and the financial wherewithal to assume ownership?

Do they have the management skills and experience to operate a small business?

If not, can you find an external successor by recruitment or through an acquisition of another firm?