Should Advisors Sell a Portion of Their Revenue?
A few years ago, selling a piece of your business at 7x revenue sounded like a no-brainer.
Liquidity without losing control. A partner without giving up the keys. The “first bite of the apple,” as they say.
But we’re in a different market now. Multiples have cooled. Capital is more cautious. And for many advisors, that once-obvious decision is now a lot murkier. It’s time to revisit this conversation.
Here’s the case for and against selling part of your advisory firm—and what to think about before you take that first bite.
The Case for Selling a Portion of Your Business
While caution is much higher, there are still scenarios where the strategic thought process makes some sense. Here are a few of the ones I hear when advisors are considering a partial sale.
1. Liquidity without walking away
You get capital now while staying in the game. That could mean paying down debt, de-risking your net worth, or simply rewarding yourself after years of reinvesting into the practice.
2. Optionality down the line
The idea is: sell 20–30% now, then the rest later at a (hopefully) higher multiple. You stay involved, stay productive, and—if all goes well—get a second payday.
3. Strategic alignment with a larger platform
If the buyer is a national RIA, OSJ, or PE-backed platform, you might receive equity in the larger enterprise. Now you're tied to their growth, not just your own. If you’re eager to recruit, M&A, or scale operations, this can be powerful.
4. Succession without full surrender
Partial deals can be a bridge for founders who aren't ready to retire but want to gradually step back. It provides continuity and security, without triggering a full exit.
The Case Against Selling a Portion of Your Business
You could take these as the case AGAINST selling a portion of your business, or you could use it as a list of cautions to weigh against the strategic reasons to go forward with it. Take your pick.
1. You lose leverage, not responsibility
You’re still running the show—but now with a silent partner on the cap table. And when it comes time to sell the rest? You may find your pool of buyers limited to whoever owns that first slice.
2. The “second bite” is often a myth
This is the big one. You very possibly mortgage your big exit for the partial one. Few advisors get two clean, high-multiple exits. Once the first deal is done, your flexibility is reduced. Few serious buyers want to buy partial books of business they have to share with another firm. In many cases, you’re most likely to sell the remainder to the same firm—on their terms.
3. Valuation risk
Partial deals often sell at the same multiple (or lower) than full ones. So why would you sell 30% today at 4x, when you could sell 100% tomorrow at the same price—and retain control in the meantime?
4. It’s straight profit—for them
From the buyer’s side, this is a revenue grab. No staff. No overhead. Just margin. That doesn’t make it wrong—but it’s important to recognize who’s really getting the better end of the deal.
One Final Thought
Selling a slice of your business isn’t a bad move. But it’s not a neutral one either.
It’s a strategic decision—one that comes with real implications for control, valuation, and future flexibility. And in a market where M&A volume is setting records and minority deals are hitting all-time highs, you’re not short on options. But abundance doesn’t equal clarity.
So, before you take that first bite of the apple, ask yourself:
Are you getting a partner—or just providing someone else with easy yield?
Are you selling upside—or giving it away at a discount?
There’s no universal right answer. Just the one that’s right for your practice, your goals, and your gut.
And if something about the pitch feels too neat, too clean, too templated—press pause. Because once you slice the pie, it’s not just yours to serve anymore.
This is a question I’m helping advisors answer for their own circumstances on a regular basis. Half the battle is knowing what’s out there and available to you for partial or full exits.
If you’re thinking through your own potential options, let’s get some time together to talk. Knowing is more than half the battle.