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The financial advisory industry is undergoing significant change marked by a record-breaking 366 practice acquisitions last year—14% more than the previous high. This acquisition trend, coupled with the average financial advisor nearing 60 years old, has created both succession planning opportunities and a strong deal market that makes 2025 a promising time for advisors looking to switch firms or sell their books of business. The right technology can streamline the transition, making it crucial to choose the best tools when changing financial advisory firms.
However, before selling a practice, financial advisors must complete a business valuation. A key factor in this valuation is the firm’s existing client base. Acquiring firms anticipate retaining a significant portion of clients, as these individuals value the advisor’s business model and service approach. However, client retention is not guaranteed, and an advisor’s book of business can shrink if the firm change process lacks appropriate onboarding tools.
What Tools Support Your Transition Plan?
During due diligence, the acquiring firm examines an advisor’s client base. This evaluation requires calculating potential client retention rates versus how many clients will not continue with the new firm.
Client retention rates can drop for several reasons—perhaps the client base is aging similarly to the advisor. Maybe the new firm’s service model doesn’t appeal to current clients. The acquiring firm must thoroughly investigate how much of a financial advisory practice will successfully transition versus what portion might not transfer.
That’s why having the right transition tools is essential to maintaining as much of the existing book of business as possible.
Effective Onboarding Tools Make the Difference
Firms shouldn’t assume that an advisor’s previous financial planning methods or retirement plan creation skills will be enough to retain clients. The onboarding process and the tools used during firm changes are major factors that determine whether advisors can maintain their book of business during transition.
Existing clients need motivation to move their assets to the new firm rather than staying put and finding a new advisor. While their new financial advisor can help encourage them to complete the required data transfer, the simplicity of the onboarding process often determines success.
Onboarding conducted in person with physical paperwork often results in severed client relationships as the hassle discourages clients from changing financial practices. A smooth transition requires simple, secure digital tools that make the firm change period as seamless as possible.
Digital Onboarding Tools Preserve Client Relationships
OnBord’s system sends clients a secure link where they input all critical information, allowing for a smooth transition process. If clients don’t complete the required information promptly, they receive gentle reminders to continue the process, preventing missed steps.
The transition process can be stressful for financial advisors concerned about erosion of their book of business during a firm change. This impacts clients who have remained loyal to the advisor’s business for years or decades and their decision to continue the relationship.
With digital onboarding tools from providers like OnBord, financial advisors can focus on their growth potential at their new firm and how to best collaborate with other advisors to advance their business.
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