Tyson Ray and Kim Cochenour dive deep into the topic of external succession. You'll hear what it means to sell your practice to an outside party (like an aggregator or private equity firm), and the difference between an integrator and an aggregator, as well as why you should consider exploring external succession.

You'll walk away with more clarity and knowledge and a crucial reminder: You don't have to do succession alone, but you absolutely have to do it!

• Tyson Ray and Kim Cochenour explore potential external succession options.
• "External succession is something that everybody should explore to make sure they're making the right decision", says Tyson.
• Kim stresses that, unlike an internal succession, an external succession may feel more like a transaction… but it doesn't have to be.
• Kim and Tyson define external succession: it's when you sell your practice to someone outside of your existing team. It could be an advisor, another peer, an aggregator, or an integrator.
• Tyson goes through what differentiates an aggregator and an integrator.
• From a financial standpoint, Tyson sees external successions as a bit more lucrative than internal ones.
• While there's a perception that there would be continuity of someone serving your clients like you do, Tyson cautions against it – it doesn't mean that everyone who raises their hand will actually be ready to buy it.
• Tyson lists some of the pros and cons of doing an external succession (and its potential repercussions for your clients).
• Did you know that there are firms that started out as aggregators that became integrators? Tyson explains why that's not good.
• Tyson discusses the option that, if you want to just throw up your hands and be done, it will enable you to do exactly that.
• Private equity is a way of "taking some chips off the table". It's a way of monetizing some of your practice, but not necessarily selling your practice.
• Thinking about tapping into private equity? Remember that who you sell to today may not be who owns it tomorrow.
• Tyson stresses the importance of making informed decisions and touches upon the concept of a succession exit (and everything it entails).
• An important reminder from Tyson: "You don't have to do succession alone…but you have to do it."

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

The financial advisory industry is facing unprecedented change as succession, consolidation, and private equity reshape the landscape. Tyson Ray and Kim Cochenour sit down with Wealth Enhancement Group's Dean Smith to explore what's driving the surge in M&A activity.

If you're an advisor wondering how retirement and succession will impact your future or why you may be underestimating both the value of your business and the complexity of succession, this conversation is for you.

• Co-hosts Tyson Ray and Kim Cochenour are joined by Dean Smith of Wealth Enhancement Group to address an unprecedented industry change.
• One of the biggest shifts happening in the financial advisory industry right now is the convergence of advisory retirement, the increased M&A activity, and the surge of private equity interests.
• Dean goes over his backstory, what drives him, and shares his thoughts on what he has seen across the industry, both in terms of advisor retirement and consolidation.
• For Dean, the influx and M&A in the financial advisory industry started in 2015 and is driven by two things: the desire for succession planning, and the fact that scaling matters.
• Some advisors choose to stay for 3-5 years post-deal. They often feel like they're having fun again.
• Tyson, Deal, and Kim touch upon some noteworthy industry trends.
• Dean has noted that "Many advisors are underestimating the value of their business and the complexity, but many of them also underestimate the complexity behind true growth."
• "There are a lot of advisors out there that are losing so slowly they still think they're winning, because market growth masks the reality of what their practice is really worth," says Tyson.
• Dean lists the qualities ideal clients of Wealth Enhancement Group (WEG) should have.
• There are a lot of unknowns about what you can actually get in terms of your succession planning.
• Dean opens up about what advisors hear once the succession "dust" settles, as well as what someone intrigued by WEG should consider.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Dean Smith on LinkedIn

Wealth Enhancement Group

Charles Schwab

Fidelity Investments

Raymond James

Jeff Dekko

Is internal succession really the "ideal" advisors imagine it to be? Tyson Ray and Kim Cochenour unpack the realities of selling to team members, family, or merging with another group – and why alignment alone isn't enough. If you care about protecting your clients, your team, and the legacy you've built, this conversation will help you see internal succession in a whole new light.

• In this episode, Tyson Ray and Kim Cochenour talk all things internal succession.
• Tyson sees internal succession as "the ideal that everybody sets out for, but doesn't necessarily take the time to really implement or build over time."
• With an internal succession, you create someone who can basically take over the expertise you have running your firm, and that can serve the most important needs of and relationships with your clients.
• Kim explains that international succession is not about selling to an outside buyer or an aggregator… it's about keeping the business in the family.
• That doesn't necessarily mean a family member, though – it can be someone who's already inside of your practice or who's working within your "ecosystem."
• Tyson points out that, while there may be some fee forms and other matters involved, an international succession within the same team is a non-client approved event.
• Tyson breaks down the internal succession process that focuses on a team member.
• Kim warns against not having a foundational conversation with relevant team members even with people you've mentored and think you know quite well…
• Citing past guest Nick Arellano, Kim shares an important reminder: alignment isn't always enough – you need accountability, legal clarity, and a plan in place.
• Tyson and Kim go over the pros and cons of having an internal succession that includes family members.
• Thinking about internal succession with a family member? Ask yourself this: "Are they the best person to run the firm?"
• Tyson and Kim talk about merging your team with another one at your current custodian.
• There are three main internal succession paths: you can sell to a team member, you can sell to a family member, or you can merge with another team at the same custodial platform.
• Regardless of the path you choose, you have to have a plan, some clarity, and some structure to help avoid the conflict for you and your clients, and the legacy you've built.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Nick Arellano

Previous episode - Succession and Exit Planning: What 40% of Advisors Must Face in the Next 7 Years with Nick Arellano

What's the difference between a smart succession and a rushed exit? Tyson Ray and Kim Cochenour are joined by Nick Arellano to discuss why treating your firm like a house sale is risky, and how valuation, growth, and planning shape your future.

This conversation will help you approach succession and exit planning – something 40% of advisors will face over the next 5-7 years – with clarity, confidence, and long-term vision.

• Tyson Ray, Kim Cochenour and guest Nick Arellano look at the elements of a smart succession and what makes for a successful business exit.
• Nick shares his background, while Kim shares an advisors-plumbers similarity.
• Not having a succession plan, and the increasing age of advisors are something advisors should really be paying attention to as the landscape is shifting.
• This may come as a surprise to you but an estimated 40% of advisors are set to retire over the next 5-7 years.
• Many advisors treat succession just like selling a house – Nick explains why that happens and the potential risks of having that approach.
• Tyson shares the story of how getting a valuation impacted him, and what advisors in a similar position should consider.
• Nick goes over the key factors of valuation: growth, value, and profit.
• Kim stresses a misconception many advisors believe, as they think that's valuation is only based on their revenue…
• Understanding that your business is not just producing income, but is an actual asset that has value is a mindset shift many advisors are unable to wrap their head around.
• Nick explains that whatever you take on an annual basis is going to impact the value you're going to get.
• The less you take upfront, the larger the value is going to be. The more you take in compensation, the lower the value is going to be.
• Want to do a successful succession? "You kind of need to start checking your ego, and now you just start letting go of some things to enhance the value of your company," says Tyson.
• Nick goes over why, in his opinion, the financial advising industry hasn't incorporated young talent really well.
• Many advisors have an operational agreement, but don't actually know what's in it.
• Remember: everything in valuation comes down to growth, risk, and profit.
• Nick discusses what their goals working with advisors is, and how you can start the process of getting help from Your Legacy Partners.
• Don't forget: it's not really about the exit…it's about what comes next.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Nick Arellano

YourLegacyPartners.com

[email protected]

The ALS Foundation

Are you choosing your successor out of clarity, or just comfort? In this episode, Tyson Ray and Kim Cochenour unpack the hidden traps of succession, from mistaking loyalty for leadership to assuming one person can wear all the hats you do.

Packed with hard truths and practical takeaways, this conversation will challenge your assumptions and help you build a succession plan that actually works.

• Tyson Ray and Kim Cochenour look at how picking your successor isn't as obvious as you may think.
• Kim kicks things off by stressing how having familiar and loyal team members doesn't mean that they're ready and capable of leading your practice into the next chapter.
• "Am I choosing my successor with clarity or with comfort?" This is a key question Kim believes advisors should ask themselves.
• Many advisors assume they already know who their successor will be.
• Tyson talks about what typically leads to that assumption, as well as the oversight on the founders' part.
• As Tyson points out, many advisors forget that their successor may need to be more than just one person – because you're wearing so many hats.
• Kim highlights how performance and leadership potential shouldn't be confused with each other, while Tyson notes how a "caretaker" may be a better candidate for succession than a "rainmaker."
• Tyson and Kim touch upon what a founder can do to challenge their own assumptions about finding their own bias.
• Tyson opens up about an approach he has used to empower team members.
• "The growth we've had in our firm is when we started hiring people and giving them the opportunity to screw things up," says Tyson.
• Decisions being made in distress, too many mistakes being made, and not having enough trial and error are some of the reasons why many founders can't exit the business.
• Never forget: "succession takes time."
• Oftentimes, leaders aren't the ones who have the title, rather it's those who lead.
• Tyson and Kim unpack the S.P.A.C.E. acronym.
• As a founder, you may be mistakenly believing that everyone in your team knows what the succession plan is.
• Tyson shares what it means to share what the succession plan actually looks like from a group perspective.
• Kim stresses how doing nothing is still a decision for your business.
• Weekly goal: ask "Who do you think could lead the business without me?" to at least two people in your network.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

What if succession wasn't the end of the road, but the start of something greater? In this episode, Tyson Ray and Kim Cochenour sit down with Bryan Sweet of Sweet Financial to uncover the lessons from his 47-year journey.

Hear about how early planning, team buy-in, and focusing on your unique abilities create a smoother transition – and how to approach succession not just as an exit, but as an opportunity for growth, freedom, and lasting impact.

• Tyson Ray and Kim Cochenour explore successful succession, the importance of team buy-in, and exiting into opportunity with Bryan Sweet.
• Bryan starts the conversation by sharing the story of his 47-year journey in business, stressing the difference between working in a financial advising firm and owning one.
• Tyson goes through each letter of the S.P.A.C.E. acronym: See, Plan, Act, Commit, Exit.
• For Bryan, success expands exponentially when advisors realize that they should spend as much of their time in their unique abilities and get others to do what they're really great at.
• Bryan lists the tools and resources he and his team have used to help cultivate the next generation of leadership.
• Having complete flexibility in what they could do for clients is one of the main reasons why Bryan and his team went to their own RIA.
• Kim stresses the importance of having buy-in from your team.
• Bryan and Tyson go into the pros and cons of changing custodians in business.
• For many, succession is "the end of the road" but not for Bryan, who sees it as a new beginning – he tells more about the perspective he's gained after doing an internal succession.
• In 47 years, it's the first time that Bryan feels as if he has every piece of the puzzle for his team and clients… He explains why that's the case.
• Thinking about succession? Bryan has a specific recommendation on how to approach it and look at the future.
• When it comes to succession, "You want to do it once, as right as you can", says Bryan.
• Starting early and doing things in thorough fashion are key elements of a successful succession.
• Tyson illustrates how looking at what the future holds isn't about exiting into nothing, rather exiting into something, a new opportunity.
• Bryan talks about what he had to do differently, from a preparation standpoint, when it comes to legal documents and structural changes when he was ready to make the change.
• If you do things well, your clients will feel like friends – this is something that will also lead you to improve your overall business performance.
• Tyson recently heard that a financial advisor's fiduciary duty is to introduce the client to the successor, to the next generation advisor who's going to take the place for the peace of mind of that client.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Bryan Sweet on LinkedIn

Sweet Financial

Is your firm's future trapped inside your head? Tyson Ray and Kim Cochenour explore why founders who keep critical knowledge, instincts, and processes to themselves risk slowing down growth – and putting succession at risk.

From documenting systems to transferring decision-making skills, they share practical ways to build a business that lasts beyond the founder.

• Tyson Ray and Kim Cochenour talk about one of the biggest challenges founders have, and that can hinder succession plans: keeping everything in their head.
• For Tyson, not only is there a lot trapped in the founder's brain, but there's also technology not leveraged to the fullest, and the team is not getting educated around the importance of the data that should be shared.
• Advisors could take inspiration from a valuable, yet common tool in the medical space: the flip chart.
• With a similar approach, advisors can have all that information shared with and by multiple people – if everything is just in your head, it can't get accessed by the rest of the team.
• Most advisors have built a decision-making business muscle that's really strong, and it's taken over for decades, but if that instinct isn't documented and taught or modeled, it can't be transferred.
• The so-called Wealth Story is one of the most common knowledge gaps advisors often have.
• Kim shares a big question founders should ask themselves: "What do you actually need to get out of your head?"
• Tyson and Kim go over the list of systems and processes that should be documented in every firm in the financial services space.
• Tyson unpacks the concept of S.P.A.C.E.
• Kim brings up a challenge for next week: to identify the one thing you know you do well, but there's no one else on your team who could do any of it tomorrow.
• Tyson talks about what he considers the best way to "download," as well as to have next-gen advisors make progress.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

How will AI, private equity, and shifting demographics reshape the future of financial advisors? In this episode, Tyson Ray and Kim Cochenour sit down with Ray Sclafani of ClientWise to explore the intersection of technology, leadership, and succession in a rapidly changing industry.

From building legacy firms to preparing the next generation of advisors, this conversation reveals what it takes to thrive in a time of transformation.

• Tyson Ray and Kim Cochenour welcome Ray Sclafani of ClientWise to touch upon industry insights, AI, succession, and more.
• Ray kicks things off by sharing his experience at ClientWise, as well as his thoughts on the role of AI within the financial advisor industry – including a "player" worth keeping a close eye on.
• Tyson's quote about AI for advisors: "As an advisor, you're not going to lose clients to AI… you're going to lose clients to an advisor that's using AI."
• Did you know that, over the next 10 years, it's estimated that 38% of advisors, representing 40% of client assets, are expected to exit the business?
• Ray touches upon something that makes the financial advisor's profession unique and better positioned, compared to other spaces and jobs.
• Ray doesn't sugarcoat it: When it comes to succession planning, the firms he works with are all over the board!
• In his talks with clients, Ray doesn't talk about termination date, but rather about freedom date.
• There are differences between advisors who have a 5-year "runway" before succession, and those who don't…
• Quoting Mark Tibergien, Ray discusses the fact that it takes 5-7 years to successfully develop the next generation.
• Wondering "Who's a great leader"? As Ray puts it, it is somebody who can develop somebody, who can develop somebody.
• There are 3 things you can do with your shares: You can sell them at fair market value, you can discount them, or you can gift them.
• "Has there ever been a better time to be in financial services?", asks Ray.
• There seems to be an M&A boom in the industry – with an estimated $1 to $2 trillion dollars sitting on the sidelines that private equity is looking to invest.
• In the U.S., 54% of teams in the wealth advising space end up breaking up…
• Kim asks Ray about how he helps clients reshape their identity in the transition of building a legacy firm.
• The Outcome Frame, which Ray and his team at ClientWise use, is all about helping people get clear about what they want their future to be and how they want to spend their time and where they can make a really big difference.
• Ray discusses the importance of putting clients first – and everything that can occur as a result.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Ray Sclafani

ClientWise

Building the Billion Dollar Business Podcast

You've Been Frame: How to Reframe Your Wealth Management Business and Renew Client Relationships by Ray Sclafani

Business Builders Academy

Morgan Stanley

FINRA

Zoom

Microsoft Teams

Jump AI

Holistiplan

Vanilla

Michael Kitsis

Joel Bruckenstein

Contrasting Viewpoints with Mark Hurley and Ray Sclafani

Financial Advisor Magazine

Australia's Royal Commissions

Who Moved My Cheese? An Amazing Way to Deal With Change in Your Work and Your Life by Spencer Johnson

Mark Tibergien

Harry Dent

Barron's

The New Retirementality: Planning Your Life and Living Your Dreams… At Any Age You Want by Mitch Anthony

National Geographic

Chip Roame

When it comes to succession, are you searching for a clone or the right complement?

In this episode, Tyson Ray and Kim Cochenour unpack why the best successors don't look just like you but bring different strengths that make the business stronger.

From mentorship to letting go of control, they share real-world lessons on how to make succession a smoother, smarter transition.

• In this episode, Tyson Ray and Kim Cochenour look at whether succession actually means finding a "clone", a younger version of yourself.
• Kim and Tyson kick the conversation off by discussing why, when it comes to succession, it's important to find a complement, not a clone.
• A common mistake Tyson has seen many advisors make is looking for that one person instead of a couple of people with interests, skills, and talents in different areas.
• Tyson goes over the reason why he was looking for a caretaker rather than a rainmaker for his business.
• Tyson and Kim touch upon the shift from focusing on monthly income to the enterprise value – and what that leads to.
• Mentorship is a key piece of the puzzle Kim and Tyson address in their conversation.
• Tyson shares a mistake he made when he first brought in people to mentor.
• As Kim puts it, "It's really bringing in your compliment, not a clone. Your successor doesn't have to do it all the way that you did, but they have to do their part really well." And that's where mentorship comes into play.
• Tyson brings up what he considers the "no-nos" advisors make when trying to develop their team.
• Remember: Letting go isn't easy but can yield big rewards for you and your business.
• Your thought for the week: Who on your team could take one thing you're still doing that you shouldn't be?

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Dan Sullivan

Previous episode - Always Be Ready to Sell: Why Scott Danner Built His Firm for Exit

Previous episode - Succession, EOS and the Power of a Plan with Andrea Schlapia

What's REALLY holding advisors back from tackling their own succession plan?

Duncan MacPherson joins Tyson Ray and Kim Cochenour to unpack the mindset, systems, and blind spots that keep even the most well-intentioned professionals from preparing for the future.

You'll walk away with insights on turning wisdom into value and making your business less dependent on you.

• Guest Duncan MacPherson, CEO of Pareto Systems, kicks things off by sharing his 30+ year journey that includes some marketing that involved… Winston Churchill!
• Duncan sheds some light on what he sees as the bigger picture of the landscape of retiring advisors.
• Duncan, Kim, and Tyson go through the four progressions of what it means to be a financial professional.
• Tyson asks Duncan to share his thoughts on the recent past and future of succession – with 30% of financial advisors exiting the business.
• Duncan explains why, in his opinion, well-intentioned, high moral compass advisors kick the can down the road when it comes to their business succession…
• Did you know that half of the population in America doesn't have an estate plan?
• Kim stresses how one of the main reasons why advisors don't bring their succession planning to clients is because they haven't thought it through themselves.
• Duncan touches upon the qualities of advisors who "got it right" and discusses the fact that "the less dependent your business is on you, the more valuable it becomes".
• Duncan sees taking what's in your head and turning it into intellectual property as key.
• You probably know S.O.P. as Standard Operating Procedures, but for Duncan S.O.P. stands for Standardized, Optimized, Professionalized.
• Duncan goes over a Chat GPT prompt every financial advisor should at least look into.
• Remember all the conversations should focus on addressing the question "How does the client benefit?"
• Citing Hemingway, Duncan says that "The goal is not to be superior to someone else, it's to be superior to your former self."

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Duncan MacPherson

Pareto Systems

Winston Churchill

The Founder's Mentality: How to Overcome the Predictable Crises of Growth by Chris Zook and James Allen

Chat GPT

Dan Sullivan