The Confident Exit Podcast

‍Summary

This episode dives into the real-world journey of growing up inside a financial advisory firm, buying into it, becoming the successor, and then turning around to acquire other practices. Pete and Brian unpack the mindset, mechanics, and emotional reality of ownership transitions—both for founders planning to exit and for next-generation successors stepping in.

Brian shares why early, honest communication between owners and potential successors is the #1 factor in successful internal transitions, how deal financing has evolved, why continuity documentation is mandatory, and what every advisor should be doing today to increase the value—and resilience—of their businesses.

Chapters

00:00 — Welcome

Pete frames the episode: two SEPA-designated advisors talking about real-world buyouts, succession, and ownership transitions.

01:00 — Meet Brian Toma

Brian’s background: 24 years in the same firm, rising from intern to owner, wearing every operational hat along the way.

02:39 — Growing Up Inside a Firm

Why having done every job—trash to dishwasher to advisor—helps him lead and train effectively today.

03:23 — The Power of Early Conversations

Brian explains how he and the founders discussed future ownership years before a deal was even possible.

04:32 — Appetite for Risk: Not All Advisors Want to Own Something

Why some advisors don’t want debt, responsibility, or entrepreneurship—and why that’s okay.

05:24 — The SEPA Framework & Value Gap Awareness

Understanding value gaps, profit gaps, and what successors must help owners close.

06:28 — Choosing Ownership Over Comfort

Story of turning down a higher salary to pursue long-term ownership potential.

08:08 — Proving Yourself as a Successor

How competence, consistency, and “doing every job first” built trust with the founding owners.

09:12 — Entrepreneurship Isn’t for Everyone

Pete and Brian unpack why advisors inside banks or captive channels often underestimate the realities of ownership.

10:13 — Transition Paths: Slow Glide vs. Clean Exit

Owners may want to stay on with top clients; why Brian encourages it.

11:32 — The Reality of Health Events

Sudden exits, health scares, and why planning cannot be postponed.

12:56 — Successor Conversations From Both Sides

How younger advisors can signal interest—and how founders can invite successors to step up.

13:51 — Shockingly Few Advisors Have Exit Plans

Most either lack documentation or have outdated documents that no longer reflect team structure or intentions.

14:45 — The Critical Role of the BD/RIA

Even perfect legal docs fail if rep code assignments and continuity agreements aren’t filed properly with the BD.

16:03 — Deal Multiples in Today’s Market

Revenue multiples rising from ~2.6× to 3–4×; cash-flow multiples reaching 7–10×.

17:48 — Protecting a Million-Dollar Asset (Even for Small Firms)

Why even solo practices with $300k revenue must preserve business value for families.

18:28 — The Most Overlooked Risk: Missing Documentation

Why “hit-by-a-bus drills” should be done with your BD and your attorney.

19:52 — Exit Planning Is a Today Project

Why waiting until you’re “ready to retire” is too late.

20:33 — Closing the Profit & Value Gaps

Recurring revenue, best-practice comparisons, and improving business fundamentals.

21:14 — Advisor Busyness vs. Strategic Planning

The compounding opportunity cost of ignoring long-term planning.

22:55 — Lending Has Evolved

More lenders understand advisory firms—but deal structure must fit a credit box.

23:38 — Taking Chips Off the Table

Partial sales, minority stakes, team buy-ins, and why these options are more accessible than ever.

24:55 — How Brian Helped a Bank Learn the Industry

The origin story of building a bank’s $200M advisor-loan portfolio.

26:31 — Structuring Deals Banks Can Actually Underwrite

Why lenders should be involved early in negotiations.

27:19 — Disability Protection Over Life Insurance

A practical approach to protecting loan payments if the buyer becomes disabled.

29:07 — The Industry Has Matured

Private equity, professionalization, and the rise of investable advisory businesses.

30:18 — Fragmentation & Consolidation

Thousands of small firms + aging advisors = massive acquisition demand.

31:09 — The Largest Advisor Transition in History

50–70+ buyers for every seller; urgency for proper continuity planning.

31:54 — The Real Bottleneck in Exit Planning

Most advisors don’t know what they want their next chapter to look like—and get stuck.

33:17 — The Personal Side: Designing Life After Work

Identity, purpose, time use, lifestyle patterns—how owners should think beyond the dollar signs.

34:29 — Owners Rarely Change Personality After Exit

Your ideal lifestyle is usually visible today; plan around what you already do and enjoy.

35:05 — Selling 20% to Secure Your Life Number

Why partial sales can fund retirement while keeping control and empowering the next generation.

35:52 — Making Ownership Feasible for Younger Advisors

Avoiding the “throw up at the purchase price” problem by selling in stages.

36:39 — Book Recommendations

Walking to Destiny; Bob Buford’s Halftime and Finishing Well for the personal side of transition.

37:36 — Teaching Your Team What Ownership Really Means

Cash flow realities, risk, bonus timing, and how to build business literacy across the team.

38:59 — Closing Thoughts

Pete wraps up with reflections on building valuable businesses and preparing for the future.

Key Takeaways

• Ownership succession works best when conversations start years before a transaction.
• Successors must be transparent early: “I want to buy this practice; here’s my timeline.”
• Many advisors are not naturally entrepreneurial—ownership isn’t for everyone.
• Health events often force exits prematurely; plans must be in place long before.
• Documentation alone is not enough—your BD/RIA must have the correct rep code assignments and agreements on file.
• Business values today are significant: 3–4× revenue, 7–10× cash flow in many cases.
• Recurring revenue dramatically increases multiples and should be a strategic priority.
• Lenders increasingly understand advisory practices—but only if deal structure fits their underwriting models.
• Disability protection is often more important than life insurance in acquisition financing.
• Private equity and minority-stake buyers give owners new options to “take chips off the table.”
• Most owners don’t know what they want to do after they sell—and that creates inertia.
• The next decade will see the largest advisor retirement wave in history; demand far exceeds supply.

Sound Bites

• “I’d rather starve now… because I knew I was never going to own that bank.”
• “Communicate your desires as quickly as possible so you can plan toward them.”
• “If you have to teach your lender your business, you have the wrong lender.”
• “Documentation means nothing if your broker-dealer doesn’t actually have the right paperwork.”
• “These next 10 years will be the largest transfer of advisory businesses we’ve ever seen.”

Guest Contact

Brian Toma, FHT Advisors

btoma@fhtadvisors.com

https://www.fhtadvisors.com/

Disclosure

The views depicted in this material are for information purposes only and are not necessarily those of Cetera Advisors LLC. They should not be considered specific advice or recommendations for any individual. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice.

Pete Bush is a registered representative offering securities and advisory services through Cetera Advisors LLC, member FINRA/SIPC, a broker-dealer and registered investment adviser. Cetera is under separate ownership from any other named entity.

The guest on this episode, Brian Toma of FHT Advisors, is a registered representative offering securities and advisory services through Cetera Advisors LLC, member FINRA/SIPC, a broker-dealer and registered investment adviser. Cetera is under separate ownership than any other named entity.

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