The financial services industry continues to grapple with the issue of succession and the decline of advisor talent as a result of aging, retiring advisors and the scarcity of experienced advisors. Twenty-six percent of the advisors retiring in the next 10 years have no succession plan, according to Cerulli Associates. And, with this group accounting for $1.8 trillion of assets, there's a significant opportunity for younger advisors to win new business, as well as a major concern of client attrition.

In general, there are three major succession paths available to advisors:

• An internal succession from one advisor to another.
• Many advisors decide to merge with another firm.
• And others do an outright sale of the business.

Each strategy takes time to be successful, and all have unique merits and demerits. Selling the business usually takes at least 18-24 months to find an external buyer, negotiate a deal and execute the transition plan. And internal transitions should be thought of as a journey—not an event—where preparation is important. The median time frame for grooming a junior advisor is five years, according to research from Cerulli Associates and Investment and Wealth Institute.