RIAs Falling Short on Succession Planning as Affordability Gap Widens 

Registered investment advisors are falling further behind on succession planning—and many firms may be unprepared for whether the next generation can afford to take over—according to a new report from DeVoe & Co. 

The firm’s latest survey of more than 100 RIA executives overseeing $100 million or more in AUM shows a stark reality: 67% of RIAs view succession as a major problem, and another 22% see it as a growing concern. Yet only 22% of respondents believe their successors can afford to buy out the founders, a figure that remains well below the levels seen earlier in the decade. While up modestly from 20% in 2024, it has still not recovered from the high-water marks of 29% in 2022 and 38% in 2021. 

DeVoe attributes the widening “affordability gap” to several forces reshaping the RIA landscape: 
• Equity migration starting too late, leaving valuations too high for internal buyers 
• External market dynamics driving RIA valuations up, especially during the industry’s consolidation boom 
• Higher borrowing costs and limited access to capital, which continue to constrain next-gen buyers 

Perhaps most concerning: a record 42% of firms say they don’t know whether successors can afford the business—despite being financial planning experts themselves. Nearly 45% expect a “bumpy transition,” up from 35% last year, highlighting rising anxiety about ownership continuity. 

Meanwhile, 11% of advisors now view succession as “overblown,” a sharp increase from just 1% a year ago—a perspective DeVoe warns is overly optimistic given the data. 

“The numbers show too few successors are prepared, and too many firms underestimate the complexity of transition,” the report concludes.