Step 1
What does this sale need to do for you?
Before you look at any number, answer one question: what do you want your working life to look like afterward? A complete exit, a smaller client load and a paid role with the buyer are three different deals. They should be priced, structured and judged differently.
A deal that pays well but keeps you doing the same work hasn’t solved the problem that brought you to the table.
Write a one-page brief: your preferred exit date, the duties you want to stop, the income you need to replace, and what you owe clients and staff. Hold every proposal up against that page.
Step 2
Do you actually own what you’re selling?
“My practice” does not settle what you can sell on your own. Before you share your book or negotiate a transfer, have your firm and your own counsel review ownership rights, affiliation agreements, restrictions and client agreements.
Requirements differ by business model. Confirm the proposed structure, registration implications, how information can be shared, what client notices or consents are needed, and who reviews each issue. Until a proper disclosure process is in place, keep early conversations at the practice level.
For brokerage relationships, FINRA’s succession guidance covers firm involvement, compensation arrangements, customer information and customer choice. It is not a blanket rulebook for every RIA transaction.
Step 3
Can a stranger understand your practice?
A buyer is trying to answer one question: what keeps working after you leave? A big AUM figure cannot answer it. A clear practice summary can, by showing how revenue is earned, how the work gets done, and where it all depends on you.
| Area | Prepare | Question it answers |
|---|---|---|
| Economics | Revenue sources, expense categories and owner duties | What cash flow remains once your work has to be replaced? |
| Relationships | Household mix, concentration and service needs, in aggregate | Which relationships need a more deliberate handoff? |
| People | Roles, responsibilities and coverage | Who can run the practice without you? |
| Operations | Systems, custody, agreements and approved processes | What would the transition force to change? |
Fix inconsistent figures before anyone negotiates around them. If you are treating a cost as removable, write down why. If growth depends on you personally, say so, and separate it from business likely to continue without you.
Step 4
Interview the buyer harder than they interview you.
Ask who makes the decisions, how the purchase would be funded, who would lead your client relationships, and whether they have the capacity to absorb the work. Look for specific answers, not broad talk about culture and scale.
Red flags worth slowing down for
- Pressure to sign an exclusivity agreement before you have seen real terms.
- Vague answers about where the money is coming from.
- Nobody can name the person who would actually serve your clients.
- A headline price with no breakdown of what is paid when, and on what conditions.
- Fee, investment or custody changes described as “details we’ll work out later.”
Have your own counsel review any exclusivity request: its length, your obligations, how you can exit, and what the buyer commits to during that period. A friendly conversation is not agreed terms. Before you go exclusive, also find out who pays transaction costs and what happens if the deal does not close.
Step 5
Price is a number. Terms are the deal.
A headline price can bundle cash at closing, deferred payments and contingent amounts that may never be earned. Pay for any work you keep doing is a separate thing and should be listed separately. For each piece, ask for the conditions, the measurement dates and the responsibilities attached.
If a meaningful share of the money depends on what happens after you step away, ask how much of it you can still influence.
Weigh the proposal against your own financial needs, not just against other offers. Your own tax, legal and valuation advisers should help you size those exposures. For a side-by-side way to compare offers, see sale terms explained.
Before the first serious conversation
Six things to have ready.
Seller preparation worksheet
Check what you have prepared. Add practice-level notes only; do not enter client names or confidential information. Nothing is sent or saved. Reloading clears your answers.
Questions advisors ask before selling
How long does selling an advisory practice take?
There is no dependable universal timetable. Buyer fit, funding, diligence, approvals, client arrangements, and operational changes can alter the schedule. Ask for milestones, responsible people, and conditions rather than relying on a promised closing date.
Can I sell only part of my practice?
A partial transition may be worth exploring, but ownership, client fit, economics, service responsibilities, and platform permissions need to be evaluated. The remaining practice also needs a viable service and income model.
Should I get a valuation before speaking with a buyer?
An early conversation can clarify interest and fit. A qualified independent valuation can help when a decision requires a defensible value; understand its purpose, assumptions, scope, and date. An informal buyer indication is not an independent appraisal.
Sources & scope
Morrowgate Private Wealth · October 23, 2026. These resources provide background; they do not endorse Morrowgate or establish the terms of any arrangement.
Worksheets, examples, and discussion prompts are educational preparation aids. Apply the requirements relevant to your business model with your firm and independent advisers.
Before you sign
Talk it through privately first.
One conversation about your priorities, your timing and what a transition has to protect. No client records, nothing to sign. Morrowgate may also be a prospective successor, and we will tell you plainly whether we are a fit.
Get a second set of eyes on the offer →Published by Morrowgate Private Wealth. Editorial standards. Educational preparation, not an appraisal or transaction advice.