Selling to Your Corporate RIA/BD: What Actually Happens vs. What Advisors Hope For
I’ve worked with a lot of advisors who start down the path of selling to their corporate RIA or broker-dealer. Most of them aren’t chasing the biggest check (though it’s nice!) as much as they’re trying to preserve what they’ve built.
They want their team and clients to be left alone.
They want to protect culture.
Some even hope to structure a deal where ownership could be bought back by the next generation of the team.
I think those are good goals. Continuity is a gift when you’ve spent your life building an excellent practice. That said, I’ve also seen some concerning emerging trends regarding how those hopes play out in practice. I have mixed feelings about how often the promises made by these corporate RIAs/BDs align with reality.
The Hope: Untouched Teams and a Future Buyback
Here’s the pitch I hear advisors repeating when telling me about their internal buyout offer. For better or worse, it’s usually repeated with a good deal of optimism.
“We’ll sell to the platform we’re already on. We trust the leadership. It’s clean, simple. We’ll keep operating as we are, and maybe in 5–7 years, I’d love for the team to have the opportunity and support to buy it back.”
Sometimes that pitch comes from internal M&A teams. Other times it’s peer-driven, usually another advisor who just did the same thing. Sometimes it’s just the easiest story to believe when you’re tired of evaluating other options. Succession planning is hard with a top-heavy age demographic.
I need to say off the top that I have absolutely seen examples where this goes well. I’ve seen advisors retain autonomy, keep their team intact, and get access to real support without much cultural drift.
But I’ve also seen the other side.
The Ways I’m Seeing Buyouts Go Wrong
Here’s what I’ve learned after watching these play out up close:
A “clean handoff” is harder than it sounds. Most corporate acquirers say they’ll leave the team structure intact. Post-close, things change quietly. Reporting lines, service models, tech requirements, and compliance processes all have a way of evolving fast. You don’t always feel it right away, but it adds up.
Buybacks almost never happen the way they were imagined. They sound great at the outset. “The team can earn it back over time,” is a broad promise, but the specific terms are rarely clear. I’ve read a few contracts. Once the parent company controls the equity, you’re negotiating from a weaker position, and they know it.
Margin pressure almost always wins. Corporate buyers have to answer to their own growth targets. At some point, your service model, staffing decisions, or tech preferences might not match theirs. That’s where I’ve seen once-thriving teams start to quietly lose the identity that made them strong. Plus, W2 advisors are far more profitable for bigger firms. Follow the money rings true quite often.
Advisors often assume too much continuity. It’s natural. You’ve been on the platform. You like the people. It feels safe, but the power dynamic is different after a deal closes. Culture doesn’t just stay the same because someone said it would. It takes work, protection, and clarity that many advisors don’t think to demand.
What I Ask Advisors to Consider
If you’re leaning toward this path, here’s what I usually talk through with clients:
What does the platform’s track record actually look like? Have they acquired other teams? What changed for those advisors after year one?
Is there a clear definition of “untouched”? Who controls staffing decisions? Compliance enforcement? Client experience?
If there’s a buyback plan, is it in writing? Is the price formula defined? Do you have any rights or first refusal clauses?
What’s your leverage post-close? If something goes sideways, what recourse do you have?
I never want to be known as the negative voice in a positive industry, but this is a major area where we need to be cautious. When incentives for the buyer don’t align with their pitch, we have a major caution flag.
I Wish It Worked More Often
I’ve said this to clients before: “I actually want this model to work. It would make things easier for a lot of people.” When it’s done right with clear terms, mutual respect, and a shared long-term vision, it can work beautifully.
My gut tells me though that most of the time, advisors make these decisions on hope. Hope isn’t a transition plan.
So, if you’re considering selling to your corporate RIA or BD, I’m not here to talk you out of it.
I just want to make sure you’re asking the right questions before the ink dries.