The primary reason RIA principals continue to run their own shops, rather than cashing out or offloading day-to-day responsibilities, has to do with fear.
The best-managed RIAs closely monitor growth by measuring net new assets and revenues, both from the addition of new clients as well as existing clients adding to their investment portfolios.
Here are three areas that wealth management firms should be monitoring to avoid taking the kind of reputational hit the airline just suffered.
Falling markets are cutting firms' revenue tied to AUM at the same time rising interest rates are making it more expensive for buyers to finance deals.
Even if you have no plans to sell, taking these steps will mean you're running a better business.
If advisers don't set expectations when they first meet with clients, clients will create their own, and odds are they'll be disappointed.
Guiding jittery clients through rough financial patches is one of the most important things advisers do, but they need to keep themselves from being emotionally drained by the effort.
Fundamental rationales for mergers and acquisitions remain strong, but deal details reflect current market realities.
Instead of pursuing ultra-high-net-worth clients, more advisers should target the largest group in need of wealth management advice in America.
The economics are attractive right now, and many advisers see a better future for virtually everyone involved if they join forces with a larger firm.
