The Next Wave of Succession: Why Advisors Are Rejoining Bigger Firms to Regain Freedom with Alex Goss

Advisors are rethinking what they want their future to look like, and the old model of "go independent and grind forever" is losing its shine. Co-hosts Tyson Ray and Kim Cochenour, along with Alex Goss of NewEdge Advisors, unpack the new realities of succession – from soaring valuations and G2 buyout challenges to burnout driving many advisors toward bigger, better-resourced firms. You'll hear about how deal structures are shifting, what buyers actually want, and why the real question isn't just how you'll exit… but what life will look like after you do. Alex Goss kicks the conversation off by listing the trends and shifts he's seen in regards to how advisors are thinking about their future. He believes that the industry is at the beginning of a new cycle, similar to what ended in 2012. After going solo and building their own firm, Alex sees many advisors wanting to join or partner up with bigger firms to win back time and have more assets and impact. Financial advisors are burned out by doing all the things that are required to support being a financial advisor. For Tyson Ray, an advisor's career progression is to end up independent and free. Alex touches upon NewEdge Advisors and what would make an advisor a good fit for his firm. NewEdge has two divisions: One built for advisors looking for ultra-high networth, very deep intellectual capital resources. The other provides operational and back office support to the entrepreneurial type of advisor. Alex discusses a challenge he has identified over the last few years: as the valuations of businesses have gone up, the ability for G2 to buy out G1 has become harder and harder. Alex explains how he has seen deal structures change as the landscape is shifting. "A lot of times, advisors forget about their replacement costs being an actual expense of the business," says Alex. Remember, when you're selling your business, you're actually selling it. Tyson shares the story of a business owner getting the valuation he was looking for… without realizing the cost of it all. When it comes to succession, Kim Cochenour believes that many advisors don't think about what their life will look like after the deal is done. If you're growing the net of the market over 6%, you're in the "really good" category. Growing between 3 and 6%? Then, you're in the "okay" category. If you're growing less than 3%, it's going to be hard to find someone interested in buying. Mentioned in This Episode: TotalSuccession.com TotalSuccession.com/podcast FORM Wealth Advisors Tyson Ray Kim Cochenour Tyson's book - Total Succession: 5 Steps for Financial Advisors to Exit Confidently, Be Fully Compensated, and Keep Clients' Interests First (available for pre-order) Alex Goss NewEdge Advisors Prudential Financial Morgan Stanley Baird Merrill Lynch Rob Sechan Wells Fargo Neil Turner