How long a sale or succession takes

Before the sale: years

SRG's founder says preparing a practice to sell takes at least three to five years. [5] FP Transitions advises starting the formal exit planning process 3 to 5 years before you expect to drop below 30 hours of work a week. [6]

An internal succession, selling to your own team over time, takes longer: FP Transitions says most plans take anywhere from 5 to 15 years, with equity transferred in tranches. [3]

The sale: months

SRG says a sale typically takes 6 to 12 months from initial engagement to closing, depending on the complexity of the deal and the speed of due diligence. [1] In the deals SRG tracked in 2024, the average time from listing to funding was 129 days. [2] FP Transitions says the period from listing to sale often takes less than 120 days. [6]

After closing: a year or more

The deal is not finished at closing. FP Transitions says locking in the final price and payment contingencies usually takes around one year after closing. [6] Most full acquisitions include a transition period of 12 to 18 months in which the seller remains available. [7] Retention earnouts typically run 12 to 24 months, [8] and earnout periods of three to four years are not uncommon in the current market. [9] Seller notes in SRG's 2024 deals averaged 5.94 years. [2]

Filings with deadlines

If an adviser not registered with the SEC takes over an SEC-registered adviser's business, it files a new Form ADV application within 30 days after the succession. [10] Every SEC-registered adviser also files an annual updating amendment within 90 days after the end of its fiscal year. [10]

Why it matters now

Cerulli reports that 35% of all financial advisors, who manage 40% of industry assets, plan to retire within the next 10 years. [4]

Next: what buyers look at.