Succession Planning and M&A with Dan Mayes

In this episode, host Adam Figura welcomes Dan Mayes to discuss succession planning, mergers, and acquisitions for financial advisors. They explore the importance of planning ahead, the great wealth transfer, practice valuations, and common misconceptions about the value of advisory businesses. Dan provides actionable steps advisors can take to maximize their firm's value and ensure a smooth transition.

 

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Chapters & Timestamps

⏱ 00:00 – Introduction to Succession Planning

• Adam Figura introduces the topic of succession planning and M&A in financial advisory.

• Guest Dan Mayes is introduced as a Director in Cetera’s Corporate Development department.

⏱ 00:44 – Why Succession Planning Matters

• The importance of planning for an advisor’s business exit.

• The three categories of succession planning: continuity planning, planned exit, and business acquisition.

• Why advisors need to be affiliated with firms like Horizon and Cetera for structured transition strategies.

⏱ 02:58 – Failing to Plan is Planning to Fail

• Advisors who don’t actively plan for succession risk their business, clients, and employees.

• The importance of having a structured plan rather than a last-minute approach.

⏱ 03:31 – Common Challenges in Transitioning a Practice

• The three biggest mistakes advisors make: 

1. Oversimplifying the succession process.

2. Lack of a written continuity plan to protect business value.

3. Not starting early enough—planning should begin 3-7 years before exit.

⏱ 06:01 – The Great Wealth Transfer & Its Impact

• 40% of advisors will retire in the next decade, managing $12 trillion in assets.

• Importance of training next-generation advisors to continue client service.

• Clients seek human advisors despite AI advancements—next-gen advisors need to be prepared.

⏱ 10:27 – Next Generation Advisors & Continuity Planning

• Next-gen advisors are entering the field well-educated but need hands-on experience.

• The importance of proactively structuring transitions rather than waiting for opportunities to arise.

⏱ 11:50 – Understanding Practice Valuations

• Recurring revenue businesses are valued higher than non-recurring revenue.

• Industry averages suggest 2.5-3.5x revenue for recurring businesses.

• Why advisors should work with valuation firms to determine true business worth.

⏱ 17:22 – Misconceptions About Practice Value

• "Your business is only worth what someone is willing to pay for it."

• Different buyers value businesses differently—terms, not just price, matter.

• The risk of selling to the wrong buyer who may not sustain the practice.

⏱ 21:10 – Key Areas to Focus on for Maximum Value

• Every advisor should have a written continuity plan—60-70% of advisors do not.

• Growth & profitability are key drivers of value.

• Importance of recurring revenue and having a solid client retention strategy.

⏱ 24:41 – Final Takeaways & Action Steps

• Advisors should: 

• Start exit planning early—it’s never too soon.

• Engage with third-party valuation firms for an accurate assessment.

• Leverage firm resources like Horizon to maximize transition success.

• Take control over business succession rather than letting it be dictated by circumstances.

⏱ 26:23 – Closing Thoughts

• Adam summarizes key insights: succession planning should start now, not later.

• Advisors must protect their business value, have a structured exit plan, and seek partnerships for support.

 

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Key Takeaways

✔ Succession planning is crucial for business continuity and maximizing value.
✔ Advisors often oversimplify the process—it requires careful planning and execution.
✔ The great wealth transfer will significantly impact the advisory profession.
✔ Next-gen advisors are well-educated and motivated, making them key to continuity.
✔ Practice valuations are rising, but misconceptions can lead to poor decisions.
✔ Every advisor must have a written continuity plan to safeguard their firm.
✔ Growth, profitability, and efficiency drive practice value.
✔ Working with Horizon and valuation experts ensures a smooth transition.

 

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Notable Sound Bites

🎤 "Failing to plan is really a plan to fail."
🎤 "Your practice is worth what someone is willing to pay for it."
🎤 "Why would you settle for average?"
🎤 "Now's the perfect time to be creating a strategy."
🎤 "It's never too early to think about exit planning."

 

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Contact:

✅ www.horizonadvisornetwork.com

🔗 Adam Figura: [e-mail]