The “sold and stay” approach to the management of wealth M&A is proving to be more than a trend. According to the Gladstone owner's study, there have been over 300 sales of RIA recorded in the Sec ($ 100 million+ Aum) each year in the last five years, with 2025 looked like another record. Many founders choose to remain actively involved after selling, resulting in a shift in the way mergers and purchases-not automatically signaling an output.
In a profession where work provides meaning and purpose, sellers increasingly choose to stay firm, but success depends on how these agreements are structured.
Why do leaders choose to stay
Motivations for a “sale and attitude” deal are multifaceted. For some leaders, it is about pouring administrative loads while maintaining their passion for customer relationships. Others see it as a practical way to ensure proper planning of success. Moreover, with ratings of firms at high historical levels, many founders see this as an opportunity to secure their financial future as they continue to contribute significantly to business.
Keys for a successful 'sale and attitude' transition
The foundation of a successful transition “Sold and Stand” rests on several critical elements:
Clear the role definition: From the beginning, both sides must clearly define the role of the remaining leader. This prevents future friction and ensures approximation with leader's strengths-whether in customer relationships, business development or long-term planning.
Mind adjustment: Realistic expectations are essential. The transition from being the main decision maker to a part of a larger organization requires a significant shift of thought. Success comes from focusing on resources and opportunities gained rather than dwelling on the changed dynamics.
Compensation Structure: Promotions must be directly related to the behaviors that direct strong success. This often involves the participation of net capital, which ensures that the remaining leader holds an interest in the firm's future growth and customer retention.
Professional Instruction: A Critical Factor of Success
A often bypassed aspect is the value of M&A professional advisers in these transactions. These experts bring:
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In -depth industry knowledge of the firm's accurate evaluation;
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Extensive buyers for optimal matching;
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Negotiating skills for structuring agreements; AND
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Expertise to provide smooth transitions.
With expert guidance, firms can focus on implementing the essential ingredients of a successful transition strategy.
Building a frame for success
For firms that consider this approach, some practical steps can help provide a smooth transition:
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Determine clear expectations and roles before completing any agreement;
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Compensation of the structure to relate to the long -term objectives of both parties;
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Consider the participation of net capital as a means of maintaining engagement;
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Create clear channels of communication and decision -making processes; AND
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Focus on maintaining valuable customer relationships as you support the growth of the firm.
While these basic elements are essential, their execution effectively in today's market environment requires careful consideration and expertise.
Making the right movement
With high historical level ratings and the complexity of modern M&A transactions, shares have never been higher for RIA owners to consider a “sold and residence” agreement. However, the difference between a successful transition and a problematic often declines to the right planning and expert instructions. Leading many RIA owners during this process, I have discovered that the most successful transitions occur when owners approach the process with clear objectives and realistic expectations of how their roles will evolve.