Financial Planning: Stay for the 'sunset' or leave for a sale: What to consider

As more than 100,000 financial advisors are expected to retire over the next decade, many are weighing two primary succession paths: participating in an internal "sunset" program through their current firm or transitioning to independence and ultimately selling their practice.

Sunset programs often provide a simpler, more streamlined transition process. Advisors can avoid the complexities of moving client accounts, negotiating with buyers, and managing operational changes. However, these arrangements may result in lower valuations, longer payout periods, and less flexibility regarding succession planning.

By contrast, advisors who move to an independent model may unlock significantly higher practice valuations and greater control over the structure and timing of a sale. While the process can be more complex, growing demand for independent advisory firms has created attractive opportunities for advisors looking to maximize the value of the businesses they have built.

Mitchell Fenimore, MBA, CEPA® Senior Vice President and Market Leader at River Wealth Advisors, noted that technological advances have made transitions to independence easier than in years past.

"The wirehouses have recognized that they need to do a little bit more than they have in the past," Fenimore said.

Fenimore also pointed to improvements in custodial technology that have reduced friction during account transitions, helping advisors move clients more efficiently when pursuing independence.

Ultimately, industry experts agree there is no one-size-fits-all answer. Advisors evaluating succession options should carefully consider valuation, tax implications, client experience, timing, and long-term goals before deciding whether the simplicity of a sunset program or the higher potential upside of an independent sale is the better fit.

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Source: Salinger, Tobias. “Stay for the 'sunset' or leave for a sale: What to consider.” Financial Planning, August 25, 2026, https://www.financial-planning.com/news/stay-for-the-sunset-or-leave-for-a-sale-what-to-consider

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