What I Learned About Succession, Culture and Legacy from John Napolitano
I recently sat down with John Napolitano — advisor, “recovering CPA”, and someone who’s done something very few have actually pulled off in this business: built a real succession plan.
Not the kind you jot down in a meeting when someone asks, “What’s your exit strategy?” I mean a living, breathing, decade-plus-long plan to transition leadership, preserve culture, and give the next generation real skin in the game.
And here’s the kicker: he started planning at 53. He's now 68 and has stepped back into a chairman role, mentoring his team while they run the business day-to-day.
The conversation covered a lot of ground, but three ideas really stuck with me:
Want to hear it straight from John? We covered succession planning, equity structures, team building, and how to stop thinking like a producer and start thinking like a business owner.
1. Producers Get Lower Multiples Than Real Owners
One of John’s early comments hit home: “Most advisors still think like producers, not owners.” It sounds harsh, but it’s true. We can’t expect to build something that outlasts us if we’re only hiring based on who brings in revenue. John’s firm hires like a business hires — with real employee-style roles, career paths, and a real investment in their people.
If you want to build something sustainable, you need to think beyond today’s production. That means hiring employees who may not “pay for themselves” in year one — and being okay with that.
2. Mentorship is an Investment Worth Making
A lot of advisors I talk to get frustrated trying to mentor younger talent. They say, “I can’t find someone who gets it” or “I brought on someone with a book, and it didn’t work out.” What I loved about John’s approach is how methodical it is: personality testing, clear job descriptions, shared goals, and regular progress tracking.
It’s less about finding a unicorn that’s already 80% of the way there. It’s about treating team development with the same rigor you apply to client planning. And when a younger advisor proves themselves, that’s when equity conversations start — not as a promise, but as a path.
3. Valuations Aren’t Just For Exit Planning
John made a point I think every advisor nearing retirement needs to hear: you can’t start planning your succession if you don’t know what your business is worth. His firm gets a formal valuation every year — not just to put a number on paper, but to uncover the blind spots. What’s helping your valuation? What’s dragging it down? And what can your next-gen team do to improve it?
That clarity empowers you to offer meaningful (and fair) ownership opportunities. Whether it's phantom equity or a structured buy-in, it’s a way to build loyalty and transition leadership without just hoping the right buyer shows up one day.
Final Thought: Are You a Producer or a Business Owner?
John said something toward the end that stuck with me: “We became a real business. With EBITDA. With a multiple. With a future.”
That’s the difference. If you're still doing everything yourself — still afraid to hire, still avoiding the tough equity conversations — you may have a great book of business, but you don't have a business that can survive without you.
So, if you’re 40 or 70, it doesn’t matter. Start now. Ask the hard questions. Invest in your people. And treat your own firm like you’d treat a client’s — with a plan, a purpose, and a future worth fighting for.
If you're not sure where to start, let's talk. It’s never too early (or too late) to get it right.
— Mike