At a time of continued M&A activity in the North American wealth sector, we continue to talk to those firms and advisors who get involved in the hard details of how these deals play out and what mistakes to avoid.

As illustrated in this article, advisors who say they have the winning formula for building successful wealth industry marriages are making a noise. M&A activity in the North American wealth sector, such as around RIAs and single-family offices, remains vigorous (with the caveat that recent equity market tumbles might cool enthusiasm somewhat). 

North American mergers and acquisitions continued to increase in number last year, with deals such as the UAE-backed purchase of CI Financial, and Bain Capital’s acquisition of Envestnet, among the stand-outs. Average assets per transaction fell slightly from $1.7 billion in 2023 to $1.4 billion in 2024. There were 11 transactions involving more than $100 billion in AuM – a record. Among deal examples in 2024 was the Hightower Advisors’ purchase of NEPC; TPG’s acquisition of Creative Planning; KKR’s purchase of Janney Montgomery Scott; and the BlackRock, JP Morgan Asset Management deal with Dynasty Financial Partners. Other deals included the Allianz X, Constellation Wealth Capital deal with AITi Tiedemann, and the Pathstone/Hall Capital Partners transaction. (Away from M&A and into more organic growth areas, see this article about how wealth managers can improve their marketing strategy.)

In this interview, Family Wealth Report talked to Jason L Smith, CEO and founder of Clarity 2 Prosperity (C2P) and Prosperity Capital Advisors (the latter has more than  $3.4 billion in AuM). He helps advisors scale their businesses, implement succession plans, and develop next-gen leadership. Through PCA, Smith has worked with RIAs on their own succession strategies as part of PCA’s AVD platform. Meanwhile, C2P provides independent advisors with marketing, operational, and back-office resources to help them scale up. Smith is the author of a forthcoming book, The Rainmaker Multiplier: How to Create a Self-Sustaining, Scalable Financial Planning Business.

FWR explored Smith’s business philosophy. 

FWR: There is a lot of focus on M&A and related corporate activity in the North American wealth sector now (RIAs, broker-dealers, multi-family offices, banks, etc). Would you say this is the busiest you have ever known it to be?

Smith: As someone who has been deeply involved in the financial services industry for decades, I can confidently say that we are witnessing one of the busiest periods of M&A activity in the wealth sector. The consolidation among RIAs, broker-dealers, multi-family offices, and banks is being driven by several key factors: regulatory pressures, the need for scale, and the aging demographics of firm owners seeking an exit. Many advisors are looking for succession solutions that allow them to monetize their life's work while ensuring continuity for their clients, which has only fueled this surge in activity.

FWR: Succession planning is important in all kinds of business, and in public life, sport, non-profits, etc. To start off in general terms, what do you see as the main challenges in getting succession planning right?

Smith: Succession planning is one of the most critical yet overlooked aspects of running a successful business. The biggest challenge is identifying the right successor - someone who not only has technical expertise but also the leadership qualities to sustain and grow the business. Emotional reluctance from founders, poorly structured financial arrangements, and a lack of preparation in transitioning client relationships all make the process even more complex. Without a strategic, long-term approach, firms risk instability, client attrition, and loss of enterprise value.

FWR: What sort of mistakes do you see coming up repeatedly, and why?
Smith: Having worked with countless advisors and firms, I see the same mistakes made repeatedly. Many wait too long to start planning, assuming they have more time than they do. Others focus solely on financial transactions rather than the cultural and relational aspects of succession. There’s also a tendency to overlook internal talent, which leads to costly external acquisitions or leadership gaps. Clear communication and structured development programs are essential to avoiding these pitfalls.

FWR: Please explain what the Rainmaker Multiplier approach looks like. Can you walk me through it?
Smith: At C2P, we developed the Rainmaker Multiplier approach to address these very challenges. This strategy is designed to transform a business from being reliant on a single rainmaker into a scalable enterprise with multiple high-performing advisors. It involves structured mentorship, business development training, and a gradual transfer of responsibilities, ensuring continuity and growth. By empowering a team rather than relying on one person, firms can create a seamless transition that preserves client relationships and drives long-term success.

FWR: What other succession strategies exist and what do you think about them in terms of their viability and chances of achieving success?
Smith: Beyond the Rainmaker Multiplier approach, there are several other strategies, including internal buyouts, external sales, and merger-based transitions. Internal buyouts often provide the smoothest transition, as they retain firm culture and client trust. However, external sales can maximize financial outcomes for the seller, though they introduce integration risks. The key is to choose a strategy that aligns with the firm’s long-term vision and values.

FWR: In succession planning, how do you measure what success is?
Smith: Success in succession planning isn’t just about a sale closing - it’s about what happens after the transition. Client retention, continued business growth, and the firm’s ability to operate seamlessly post-transition are the true measures of success. If the firm remains profitable and retains its identity while adapting to new leadership, the succession plan has been executed effectively.

FWR: Are there a number of repeatable processes that you think can be developed to achieve more succession planning success?
Smith: Succession planning shouldn’t be an afterthought; it should be built into the DNA of a business. Firms that implement repeatable processes—such as structured leadership training, mentorship programs, phased ownership transitions, and clear succession agreements - are far more successful. A brand transition process is also critical, if applicable to that business. These processes reduce uncertainty and create a roadmap for long-term sustainability.

FWR: How big a part of getting this right is avoiding the mistake of trying to mold a successor to be exactly like the person handing over? How hard is it for those passing on the baton to get a little distance and sense of perspective?
Smith: One of the biggest mistakes I see is founders trying to clone themselves in their successors. The reality is that no one will ever lead exactly as they did - and that’s okay. The goal should be to develop a leader who brings their own strengths while upholding the firm’s core values. Stepping back and allowing a successor to develop their leadership style is essential for a smooth transition.

FWR: How far in advance should a person prepare for succession?
Smith: The best time to start succession planning? Years ago. The second-best time? Right now. Ideally, advisors should begin preparing five to ten years in advance. This allows ample time for training, client introductions, ownership structuring, and leadership development. A rushed succession plan is a recipe for disaster, whereas a well-thought-out strategy ensures continuity and success.

FWR: Concluding thoughts?
Smith: At the end of the day, succession planning is about more than just business - it’s about legacy. Advisors spend their lives building relationships and guiding clients through life’s biggest financial decisions. A well-executed succession plan ensures that their hard work continues to benefit clients, employees, and future generations of advisors. Firms that embrace strategic succession planning will not only survive transitions but thrive beyond them.