External Succession: Decoding Aggregators, Integrators, and the Private Equity Play

Total Succession

Tyson Ray and Kim Cochenour dive deep into the topic of external succession. You'll hear what it means to sell your practice to an outside party (like an aggregator or private equity firm), and the difference between an integrator and an aggregator, as well as why you should consider exploring external succession.

You'll walk away with more clarity and knowledge and a crucial reminder: You don't have to do succession alone, but you absolutely have to do it!

• Tyson Ray and Kim Cochenour explore potential external succession options.
• "External succession is something that everybody should explore to make sure they're making the right decision", says Tyson.
• Kim stresses that, unlike an internal succession, an external succession may feel more like a transaction… but it doesn't have to be.
• Kim and Tyson define external succession: it's when you sell your practice to someone outside of your existing team. It could be an advisor, another peer, an aggregator, or an integrator.
• Tyson goes through what differentiates an aggregator and an integrator.
• From a financial standpoint, Tyson sees external successions as a bit more lucrative than internal ones.
• While there's a perception that there would be continuity of someone serving your clients like you do, Tyson cautions against it – it doesn't mean that everyone who raises their hand will actually be ready to buy it.
• Tyson lists some of the pros and cons of doing an external succession (and its potential repercussions for your clients).
• Did you know that there are firms that started out as aggregators that became integrators? Tyson explains why that's not good.
• Tyson discusses the option that, if you want to just throw up your hands and be done, it will enable you to do exactly that.
• Private equity is a way of "taking some chips off the table". It's a way of monetizing some of your practice, but not necessarily selling your practice.
• Thinking about tapping into private equity? Remember that who you sell to today may not be who owns it tomorrow.
• Tyson stresses the importance of making informed decisions and touches upon the concept of a succession exit (and everything it entails).
• An important reminder from Tyson: "You don't have to do succession alone…but you have to do it."

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour