Such arrangements are often structured in ways that misalign the interests of the buyers and sellers, and they can be highly divisive.
Firms interested in selling have increased dramatically, but going into the end of this year, it may be hard to find the specialized contractors needed to complete a deal, like bankers, lawyers and accountants.
If the perceived value of an RIA is tied to the adviser's investing prowess, it makes it hard to develop a succession plan or sell the firm.
The key for advisers is finding a balance where they maintain the maximum freedom that enables them to focus on their purpose.
My experience has shown me that advisers who target a specific niche of clients receive more referrals, are able to provide better service and can charge higher fees.
One of the main reasons we were able to achieve what we have is because we hire and retain great people who are highly skilled at what they do.
The more complicated you make your advisory firm, the less valuable it is. Complexity can also reduce the odds of arriving at a fruitful succession plan.
If you are a competent, caring, hands-on financial adviser, you should charge a market rate for your services.
We’ve gone from $2 billion to over $10 billion in AUM in four years because we’ve consistently adhered to three broad principles: Everything must be repeatable, measurable and scalable.
Advisers should focus on reducing client attrition and adding more new clients, and make certain they're charging a fee in line with the market.
