For most RIA founders, selling a firm is rarely about just optimizing a financial return for the owner. This decision is generally contemplated at a critical inflection point—but how does one navigate the inflection point to turn decades of work into something everlasting, not just in dollars, but in meaning? It’s the culmination of thousands of decisions, sacrifices, worries, late nights and relationships with clients and teams built over a career. It is also a moment that carries real weight, not just for the owner, but also for the team that helped build the business alongside him.
And yet, many owners don’t realize how early the probable outcome is shaped. By the time a founder “feels ready” to explore a transaction, much of what determines valuation, deal structure and post-close success is already embedded in the business. The operational decisions made years earlier, such as how leadership is developed, what types of clients are served and how advice is delivered to them, how culture is protected and how dependent the firm is on one individual, are directly important to the ultimate outcome.
In today’s hyperactive and competitive RIA M&A environment, the operational framework matters more than ever. Well-prepared firms can create leverage and choice in the context of a sale; underprepared firms often discover that their “options” may come with undesirable conditions.
Based on our experience with more than 110 firms joining Mercer Advisors, the founders who fare best in selling to a partner treat preparation as stewardship: building an enduring business that can thrive without them, whether they sell or not. Below are a few areas of preparation that support a successful business and transaction.
1. Build leadership depth. One of the first questions sophisticated buyers evaluate is the depth of leadership. Firms that are overly dependent on a single rainmaker, planner or decision-maker face continuity risk. Buyers compensate for that risk through structure (more consideration moved to deferred payments), valuation discounts or both. Conversely, a visibly strong team, particularly G2 talent who are credentialed advisors and emerging leaders, signals long-term durability and is more valuable to a buyer
2. Treat culture as a primary topic. Culture and fit are not “soft” considerations in a partnership; they are arguably the most important ones. Combining two partners who share the same values is frequently the hidden determinant of whether a deal feels successful two years later. Financial terms may define the deal, but culture determines whether staff thrive, clients feel continuity, and founders feel proud of what comes next. Sellers who choose partners aligned with their values, and most importantly, how advisors are supported, how clients are treated, and how growth is pursued, are far more likely to look back on their choice as a successful one.
3. Formalize client experience and reduce complexity. Founders often assume that when they join a partner firm, their clients will “stay because they love us.” Buyers assume clients will stay if the experience improves or at least remains consistent. As a proof point, buyers want to see a client experience formalized through a documented service model, consistent delivery, and evidence that it isn’t dependent on any one person. The idea that client experience will feel similar because clients are the center of all decisions is important. Even better, if there is room for clients to see the benefits of additional services at the new firm, client retention and satisfaction should grow.
When formalizing processes, consider reducing complexity where possible. Excessive customization may feel personal, but it can introduce complexity that makes life harder for advisors and compliance teams post-close. It can also impact the ability to embrace change and grow. Defined model portfolios, clear governance and repeatable onboarding processes are positive characteristics to show a buyer.
4. Master organic growth and demonstrate clean economics. Buyers look for evidence that the firm is healthy, resilient and positioned for the future. Buyers look closely at organic growth (net new assets excluding market appreciation), revenue retention from existing clients, margins, and revenue quality. Substantiate growth sources and be able to demonstrate a consistent track record of growth and retention. In addition, be able to confidently discuss all financial aspects of the firm. When it comes to operating margin, make sure it is balanced—sky-high is not always best, as it can signal capacity constraints or a service model that cuts corners. Conversely, margins below normal levels can signal operational inefficiencies.
Final Words: Preparation preserves choice—and protects legacy
The most successful sellers don’t treat readiness as a box-checking exercise. They treat it as stewardship: strengthening leadership depth, clarifying culture, operationalizing client experience, reducing complexity, and proving durable growth. A sale is more than a liquidity event. For most founders, it is the final chapter they get to write.
In the end, the right deal isn’t just the highest price. It’s the one that honors the legacy, protects the culture and gives employees and clients a future that feels even stronger than the past, even if a sale isn’t the ultimate outcome. The earlier you prepare, the more likely you are to choose that outcome—on your timeline, not someone else’s.
