In this episode of Advisor Talk, Frank LaRosa and Stacey Frank break down the realities behind minority equity deals in advisory practices - including what advisors often misunderstand about control, exit clauses, valuation multiples, and long-term implications.

Frank explains why even a 10–20% minority stake effectively creates a partner in your business - whether you think of it that way or not - and why advisors must think beyond the upfront check and consider the unwind scenario before signing anything.

They also explain the difference between taking a transition loan versus selling equity - and why one is far easier to reverse if things don’t go as planned.

Key questions explored in this episode:

What does selling a minority stake actually mean for control?

Even at 10–20%, you now have a financial partner whose incentives may influence hiring, spending, technology, and growth strategy.

Is there usually an exit clause?

In many cases, especially with smaller RIAs, there may be little to no unwind option. Larger firms may offer buyback terms — but often at a higher multiple if you’ve grown.

Why are broker-dealers offering these deals now?

Firms are looking to accelerate growth beyond the industry’s typical 5% net new asset growth rate and to retain advisors long term.

If you’re a financial advisor considering selling 10–30% of your practice - or being approached with a “sell and stay” offer - this episode will help you think through the long-term consequences before you sign.

Chapters:

01:06 – Episode Intro

03:12 – Advisor Concerns

04:45 – Revenue vs Profit Share

06:02 – You Now Have a Partner

06:59 – Exit Clauses Explained

10:16 – Control & Fees

14:09 – Growth Expectations

18:25 – Why Firms Invest

25:28 – Don’t Decide on Money

Learn more about Elite and our resources:

Elite Consulting Partners | Financial Advisor Transitions

https://eliteconsultingpartners.com

Elite Marketing Concepts | Marketing Services for Financial Advisors

https://elitemarketingconcepts.com

Elite Advisor Successions | Advisor Mergers & Acquisitions

https://eliteadvisorsuccessions.com

JEDI Database Solutions | Technology Solutions for Advisors

https://jedidatabasesolutions.com

Listen to more Advisor Talk episodes:

https://eliteconsultingpartners.com/podcasts/

In this episode of Advisor Talk, Frank LaRosa and Stacey Frank take a grounded, advisor-first look at how AI is actually changing the profession - and why the future of advice is still fundamentally human.

Rather than fearing AI, Frank explains why this moment closely mirrors the rise of online trading in the early 2000s - a shift that many believed would eliminate advisors, but ultimately made great advisors even more valuable.

This conversation centers on a critical idea:

Technology can provide data. Only humans can provide wisdom.

Frank and Stacey break down how AI can enhance efficiency, buy back time, and improve service - while also exposing advisors who rely solely on technology without building real client relationships.

They also introduce the concept of co-intelligence - where advisors use AI as a tool, not a replacement and explain why empathy, clarity, and human judgment remain the true differentiators in financial advice.

Key questions explored in this episode:

Will AI put financial advisors out of business?

No. But it will challenge advisors who lack a strong service model or meaningful client relationships.

Why doesn’t AI replace the advisor-client relationship?

Because clients don’t hire advisors for calculations - they hire them for clarity, reassurance, and guidance through uncertainty.

How should advisors be using AI today?

As a way to remove friction, automate tasks, and free up time to focus on deeper client conversations and better service.

What is “co-intelligence”?

A mindset where AI delivers information, while advisors provide judgment, empathy, and leadership.

What happens to advisors who ignore AI altogether?

They risk falling behind firms that use technology to become more efficient - and more human - at the same time.

If you’re a financial advisor wondering how AI fits into your practice - or worried about what it means for your future - this episode offers perspective, clarity, and a practical way forward.

Chapters:

00:49 – Intro

02:55 – Online Trading Parallel

04:40 – AI Fear

05:30 – Human Advice

08:47 – Co-Intelligence

10:46 – Clarity vs Calculators

12:58 – Human Advantage

16:25 – Service Wins

Learn more about Elite and our resources:

Elite Consulting Partners | Financial Advisor Transitions

https://eliteconsultingpartners.com

Elite Marketing Concepts | Marketing Services for Financial Advisors

https://elitemarketingconcepts.com

Elite Advisor Successions | Advisor Mergers & Acquisitions

https://eliteadvisorsuccessions.com

JEDI Database Solutions | Technology Solutions for Advisors

https://jedidatabasesolutions.com

Listen to more Advisor Talk episodes:

https://eliteconsultingpartners.com/podcasts/

Key questions answered in this episode:

What does it mean when financial advisors choose not to decide?

Choosing to stay put - without evaluating alternatives - is still an active decision, often driven by comfort, fear, or overwhelm rather than strategy.

Why do advisors delay firm transitions even when they’re unhappy?

Two major factors show up repeatedly: the path of least resistance and paralysis by analysis. Both create inertia that keeps advisors stuck.

Is transitioning firms as risky as advisors think?

Modern transitions are more automated, efficient, and client-friendly than ever. The perceived risk is often outdated.

How does too much information stop advisors from moving forward?

Without a filter, advisors get overwhelmed by competing offers, recruiters, and platforms - leading many to shut down instead of decide.

Why should advisors evaluate their firm regularly - even if they’re not planning to move?

Because you can’t know what you’re saying no to unless you understand what options actually exist.

If you’re a financial advisor who feels frustrated, stuck, or unsure whether staying put is truly the right move, this episode offers clarity - not pressure - to help you think through your next step.

For many advisors, simply understanding what’s available is enough to break decision fatigue and regain momentum.

Learn more about Elite and our resources:

Elite Consulting Partners | Financial Advisor Transitions

https://eliteconsultingpartners.com

Elite Marketing Concepts | Marketing Services for Financial Advisors

https://elitemarketingconcepts.com

Elite Advisor Successions | Advisor Mergers & Acquisitions

https://eliteadvisorsuccessions.com

JEDI Database Solutions | Technology Solutions for Advisors

https://jedidatabasesolutions.com

Listen to more Advisor Talk episodes:

https://eliteconsultingpartners.com/podcasts/