InvestmentNews recently reported on Carson Group's acquisition of Taylor Financial Group as it sheds light on the financial and personal pressures that often accompany succession planning in the RIA space, particularly for family-owned firms.
Debbie Taylor founded Taylor Financial Group as a women-owned advisory practice focused on tax-planning services. Over two decades, she built the Franklin Lakes, New Jersey-based firm to manage $385 million in client assets. Approaching retirement, Debbie considered passing the business to her daughter, Caroline. But doing so would have forced Caroline, then 26, to assume a multi-million dollar loan to cover operating costs and purchase the business, risking the family's wealth and financial stability, according to InvestmentNews.
With two-thirds of the Taylor family's net worth tied up in the practice, Debbie ultimately chose to sell to Carson Group in late 2024. According to InvestmentNews, the deal marked Carson's tenth acquisition of the year. The transaction provided Debbie an upfront cash payment, retention bonuses for Taylor's 10-person team, a three-year growth earnout, and a significant equity stake in Carson Group, now managing over $40 billion in client assets. The sale also relieved Taylor Financial of operational burdens, including administrative, HR, and technology functions.
Debbie, now a managing partner and chief tax strategist at Carson Wealth, noted that traditional succession models often place undue financial strain on second-generation successors. Caroline echoed those concerns, explaining that taking on heavy debt to purchase the firm would have jeopardized both her financial future and the family's wealth.
Caroline now serves as director of wealth strategy at Carson Wealth and received stock as part of the sale. Unlike equity stakes given upfront to selling founders, Carson typically structures equity for second-generation advisors as performance-based payouts over several years. Alongside the equity, Caroline gained improved compensation, benefits, and career opportunities within the larger corporate structure.
Debbie acknowledged that the landscape for RIA sales has transformed with private equity's growing presence. When Bain Capital acquired a minority interest in Carson in 2021, the firm managed $17 billion in assets.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
