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July 16, 2019 at 11:03 AM
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Just as every wealth management firm has its own unique set of attributes and work environment, every advisor has his or her own criteria for what makes an ideal destination. Therefore, independent advisors looking to change firms should make every effort to find a broker-dealer and/or RIA that fits that criteria. But how?
If this were as simple as reading a brochure, advisors would not spend so much time agonizing over the choice. While many firms do strive to capture what they offer in marketing materials, much of what advisors care about when seeking a new affiliation or group of colleagues can only be verified through lived experience.
Because nobody can be sure of that beforehand, the next best thing is a step-by-step guide to help increase advisor confidence and success in finding a partnership in a place they will thrive for the rest of their careers. Based on my frequent conversations with advisors on this topic, there are four steps to the process.
- Know the traits you want at your new broker-dealer or RIA. Starting with a clear vision of your ideal partnership removes a lot of firms from consideration. Some traits are commonly sought after but others will be particular to your practice, lifestyle and personality.
Most advisors prefer a firm that offers easy access to senior leaders who communicate frequently about organizational issues that can affect business. Another near-universally appealing trait is home office staffers who actually know your name, and that of your team, and do everything they can to simplify workflows and increase your ease of doing business.
However, if you also want a firm that possesses less common traits — like those that may exist primarily in a certain region of the country, or that can only exist at a firm with both a small boutique feel and a large enterprise capacity, or have specific capabilities (e.g. ERISA expertise), then narrow your search.
- Speak with experienced consultants for information on such firms. Although you should compile your own list of firms that you believe possess your desired attributes, a well-connected recruiter or M&A specialist in the independent space likely will be able to help fine tune that list significantly.
Granted, you will have to do your homework before landing on the proper consultant. Too many so-called experts have not been working in their niche long enough to know what to look for or have not developed the best contacts, meaning they lack insight into the distinguishing practices and procedures of firms across the industry.
