Private Advisor Group teams up with succession tech platform

Private Advisor Group, a major OSJ of LPL, is taking aim at the thorny problem of succession and business continuity planning with a new fintech collaboration.

On Thursday, the New Jersey-based independent wealth firm, which boasts over $31.5 billion in assets under management as of December 31, 2023, unveiled a strategic partnership with Succession Link to improve succession planning, business continuity, mergers and acquisitions, and hiring practices for its advisors.

Under the initiative, Private Advisor Group is providing its advisors with a digital platform to buy, sell, hire, or find continuity partners – all urgently needed as an increasing number of advisors retire and fewer new advisors entering the profession.

According to one 2023 J.D. Power study, the average age of US financial advisors is 56, and 20 percent are within five years of retirement.

A Cerulli Associates report published earlier this year indicates that nearly 40 percent of US financial advisors plan to retire by 2030; in another concerning finding, the research intelligence firm estimates nearly 26 percent are uncertain about their succession plans.

"Private Advisor Group embraces a core value across its community to 'enjoy the journey,' taking great care to protect the steps, twists, and turns during every stage of a financial practice's journey," Donald Stahl, head of sales and solutions at Private Advisor Group said in a statement. "Navigating unforeseen events and ensuring continuity is a challenging but essential part of our work with advisors and their families."

Through the partnership with Succession Link, Private Advisor Group said its advisor community is gaining exclusive access to a 72,000-member marketplace of succession opportunities, helping them find opportunities for smoother transitions and better succession outcomes.

"Private Advisor Group's commitment to succession planning and creating opportunities for M&A, hiring, and more is admirable, and we're thrilled to expand our marketplace across their community of advisors," said Nicholas Gudz, co-founder of Succession Link.

The partnership builds on other proprietary programs at Private Advisor Group, including the Advisor Protection Program, Alignment & Equity Program, and various consulting services to support advisors throughout their succession planning journey.

The value of an advisor succession plan should not be underestimated, Stahl said, as the ones without it “scramble to keep the business running smoothly” and risk losing significant enterprise value if they rush the process.

"With a well-structured succession plan, advisors ensure continuity and stability in their practice, safeguarding core investor relationships, maintaining operational integrity, and securing critical leadership roles," he said.