For many registered investment advisor (RIA) firm owners, succession planning is a daunting but necessary process. But for women-led firms, the journey toward a successful transition is often more complex, requiring a nuanced approach that goes deeper than the numbers.
“As a founder myself, I think you need structured support because this is a years-long process,” says Bridget Grimes, president of Wealth Choice and co-founder of Equita Financial Network.
Grimes is among nearly two dozen speakers set to take the stage at the InvestmentNews Women Advisor Summit, which is happening on October 21 at the Tribeca Rooftop + 360 in New York City.
“You don't just say, ‘Okay, I'm going to retire next year, and I need a succession plan,’ " Grimes emphasizes. "It really is something that starts years, years, years in advance.”
Brooklyn Brock is the founder of Ellevate Advisors, which helps advisors work through their own continuity and succession planning. As part of a holistic and structured approach, she says it's important to consider both personal and business factors.
“Traditional exit planning [focuses on] just the business, but there’s so much personal change going on that we’ve seen advisors really need personal and business support,” Brock says.
Despite decades of progress, women remain underrepresented in the advisory profession – among CFP professionals, they make up just over 23%. But when it comes to exit planning, they account for an outsized share of those not satisfied with the status quo.
“A lot of the solutions out there are just so cookie cutter, cut-and-paste, and it’s just not enough," says Tiffany Lee, exit planner and certified retirement coach at Ellevate Advisors. "It’s not what women are wanting.”
“About 55% of our exit planning clients are females. So this type of service is really something that women want and need,” Brock says.
According to Grimes, one of the biggest hurdles for women advisors is the limited pool of potential successors who share their values and vision.
“How do you find a successor who shares your values, who shares your vision for your legacy?” Grimes says. “If your goal is to find another woman as a successor, we don’t have a lot of [potential candidates] ... There’s that tiny pool."
While quick to reject the proverbial broad brush, Brock has found men to be better at compartmentalizing deals down to questions of execution, ownership, and payouts. On the other hand, women in her experience are more likely to see succession planning as a deeply collaborative and creative process, with a focus on legacy, relationships, and well-being.
“Women negotiate non-financial deal terms, and it’s worth money to prioritize relationships and flexibility over the payout,” Brock insists.
Grimes emphasizes that while securing fair financial terms matters, "monetization does not drive the bus.” Beyond that, she argues that putting more stock in intentional planning and values alignment helps raise the odds of client and advisor retention.
“Because these succession transitions are more successful, that would probably even be more beneficial in terms of the value of a firm,” Grimes says.
The emotional stakes in succession planning are also high for women advisors, who often feel a deep sense of responsibility for their clients and teams.
“Women see this succession plan as an opportunity to improve the lives of those around them. And we carry a sense of guilt if our succession plan doesn’t make people’s lives better,” Brock says.
Lee, who brings a background in therapy to her work at Ellevate, agrees. “That is an emotional hurdle that you have to get over ... The anxiety that you’re going to regret or feel guilt and feel overly responsible for the outcomes that might be beyond your control.”
And for many women advisors who see their firm as a piece of themselves, the prospect of stepping away may seem especially fraught.
“So much of my firm is my identity," said Grimes, whose career began with Morgan Stanley before she ultimately became an independent advisor-owner. "I chose to launch this business because I had to leave where I was before.”
While large PE-backed consolidators and aggregators increasingly offer succession solutions, such private equity options may not fit every founder’s needs, especially those who value independence and a unique approach to client service. That means for many women advisors, the best path forward is to view succession as an ongoing process that ensures the sustainability of the business and the well-being of all stakeholders.
“Don’t think about succession as a future problem," Lee says. "Think about it as a phased transition that starts now ... It’s not something that’s just going to happen later."
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