What I learned about guiding clients through firm consolidation

The financial advisory industry has changed dramatically over the past several years. We’ve seen a wave of consolidation, whether it’s private equity firms buying into practices or large-scale mergers between established companies.  

Just in the past year, we’ve witnessed the merger between LPL and Commonwealth, two of the biggest players in the space and a few years before that, we saw something similar when MassMutual and MetLife Advisors came together. 

That last merger hit home for me personally because I was part of it as a financial advisor affiliated with MassMutual at the time.  

Experiencing that transition firsthand gave me a real understanding of how consolidation impacts not just the firms involved, but the relationships between advisors and their clients. At the end of the day, everything we do comes down to serving our clients and if we don’t do that well, nothing else matters.  

Costs are always rising, technology is constantly evolving, and firms are looking for efficiencies, but amid all the change, my focus has to remain on what’s best for the people who’ve entrusted me with their financial lives. 

Communication Is Everything 

Change can be unsettling for clients. Let’s face it, most people simply don’t like change. Even in my own life as a consumer, if I get a letter saying that my service provider has changed names or merged, I immediately wonder, “What does this mean for me?” 

I’ve been through two firm transitions in my career, and both times, I learned the same lesson: communication is key.  

Of course, there are compliance rules and sometimes you can’t reach out to clients until your registration with the new firm is complete; but once that happens, the most important thing you can do is get on the phone, send emails, and connect with clients right away. 

During my first move, I remember walking into a meeting with one of my largest clients, nervous about how they’d react. Before I could even finish explaining why I’d made the change, they stopped me and said, “Todd, we chose you to be our advisor. The name on the door doesn’t matter as much as knowing you’re still the one looking out for us.”  

That moment was a huge relief and reaffirmed that what clients truly value is the relationship, not the logo on the letterhead. 

That lesson carried through the rest of my meetings, and as a result, we retained more than 95% of our clients through those transitions, but I know that’s not something to take for granted; it comes down to earning and maintaining trust every single day. 

When Rebranding Confuses More Than It Helps 

One of the stranger stories I remember from that MassMutual–MetLife transition involved an unexpected bit of brand confusion.  

MetLife’s insurance products were rebranded as BrightHouse Financial around the same time a Florida cable company was also operating under the name Bright House Networks.  

I spoke with clients who saw “BrightHouse” on their bank statements and thought the cable company was charging them! Some even canceled their insurance policies by mistake. 

It was a reminder that even something as simple as a name change can create anxiety and misunderstanding for clients. Transparency and communication aren’t just good practice; they’re essential in maintaining trust through periods of change. 

Beyond the Money: The Real Cost of Consolidation 

There’s no denying that private equity offers big payouts to advisors looking to sell their firms. But for me, the bigger question is: are those buyers the best stewards for clients?  

I’ve made a promise to serve my clients the best way I know how. That includes thinking beyond short-term financial gain and considering what happens years down the road. 

If a private equity firm is focused purely on numbers, what happens when certain accounts are deemed “not profitable”? Do those clients get left behind or shuffled off to a call center? I’ve already seen situations where clients - good clients with significant assets - are now treated as just another account number, speaking to a different advisor every time they call. 

That’s not the kind of experience I want for my clients. I live in the same community as many of them. I see them at the grocery store, at local events, and around town. Their satisfaction matters not just professionally but personally. 

Growth with Purpose 

I’ve always grown my practice organically, client by client, relationship by relationship, but that’s not to say acquisitions or mergers are bad. When done thoughtfully, they can create efficiencies and improve services.  

But like personal financial planning, corporate growth needs careful, long-term thinking and too many firms focus on the immediate payoff without fully considering the impact on clients and staff. 

For me, it’s about balance. I appreciate the benefits of being part of a larger firm, particularly when it comes to technology and compliance support. Having that infrastructure allows me to deliver a higher level of service. But growth for growth’s sake isn’t the answer. 

The Value of Personal Connection 

Even as technology advances and virtual meetings become the norm, people still crave personal connection. They want to work with someone who knows them, their goals, their families, their stories. That’s not something a call center can replicate. 

Of course, not everyone wants that kind of relationship. Some people prefer the big names and are perfectly comfortable with a more transactional experience and that’s ok. But there will always be clients who value personal service over brand recognition. 

Interestingly, some of the top advisors in the country aren’t in major financial hubs, but in small towns, serving local communities. They’ve built their reputations by being trusted, accessible, and consistent. That’s something no merger or acquisition can replace. 

Staying True to What Matters 

Consolidation is reshaping our industry, and in many ways, that’s inevitable. But what doesn’t change is the foundation of this business: trust, service, and relationships. 

For me, success isn’t measured solely in assets under management or firm size but in the satisfaction of clients who feel confident in their financial future and who know I’m there for them no matter what changes happen around us. 

At the end of the day, that’s what this profession is all about. 

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