After years of crafting financial plans for others, advisors often find that their own succession plan for retirement is lacking or even nonexistent.

If you’re about five years from selling your advisory practice, maximize the value of your life’s work by following these proactive steps. They can mean the difference between a less-than-positive exit and a highly profitable one.

Decide Whether the Practice Will Transition Internally or Externally

The successor can be an unrelated third party, another experienced advisor, an internal advisor or a family member. Each of these options has pros and cons, so identify your primary goal for the succession. It could be getting the highest sale price, making a seamless transition for clients or creating the opportunity for a second-generation firm.