Succession nears a breaking point, DeVoe survey finds

Two-thirds of RIA leaders call the lack of succession planning a major issue. Only 22% believe the people taking over can afford to buy the firm. DeVoe & Company's 2025 RIA M&A Outlook frames succession as reaching a breaking point, with the affordability gap widening as valuations climb and equity stays with founders. Internal succession, on these numbers, is less a talent problem than a capital problem.

Growth anxiety feeds the same math. Organic growth ranks as the top worry for 53% of leaders. The concern shows up on both sides of the table: growth is the leading motivation for 79% of buyers and 49% of sellers. The symmetry argues for premium prices, which only widens the affordability gap. An owner who cannot articulate the next source of revenue bargains from a weak seat.

Culture has become the leading attribute acquirers seek, selected by 69% — the first time it tops the list since the survey began. Buyers have absorbed years of integration lessons and now treat culture as the backbone of sustainable growth. For sellers, the shift means due diligence weighs who stays and how they are managed as much as the financials.

The report also finds 80% of advisors expect AI to benefit the industry, mostly through efficiency and client experience. The survey does not connect AI to succession, but any technology that lowers the cost of running a firm could change how much a buyer pays — and that, if it happened, would narrow the affordability gap, not widen it.

For owners, the numbers are unsparing. If two-thirds call succession a major problem and roughly one in five sees an affordable buyout, the gap will keep growing as long as valuations stay high and equity stays locked up. Waiting is itself a choice — a year of delay makes the buyout that much harder.