RIAs bite their nails when deciding to sell the firm

RIAs bite their nails when deciding to sell the firm
Seventy percent experience anxiety over the decision, HighTower study finds.
DEC 11, 2019
Selling a registered investment advisory business is so stressful that 70% of RIA firm owners experience anxiety over the decision to sell, according to a study by HighTower, a firm that provides services to RIA firms. The study, which consisted of one-on-one interviews with advisers pre- and post-deal, found that 64% reported their top concern as losing operational control, 45% were anxious about losing or diluting their brand identity and 36% were worried that clients would react negatively. Nearly a third expressed concern about having to change aspects of their investment approach. [Recommended video: Bob Oros said HighTower is likely to start buying smaller firms, too] Every adviser in the study said they viewed culture and values as a top priority, and several said they would only consider a partner that could support an elevated, high-touch client experience, HighTower said in a release. The research showed that advisers are driven to sell their businesses for a variety of reasons: 50% said their primary motivation would be to capitalize firm ownership, 41% said they thought it would help streamline succession planning, 27% wanted access to capital for growth initiatives, and 27% hoped to gain a better technology platform.

Latest News

Retirement delays, Social Security fears prompt advisors to rethink income strategies
Retirement delays, Social Security fears prompt advisors to rethink income strategies

Concerns about outliving savings and healthcare costs are reshaping how "Peak 65" Americans and advisors approach income planning.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut
RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut

Modern Wealth's latest deal for a California-based fee-only RIA marks its fourth acquisition of 2025.

Empower defends private market access in 401(k)s in response to Warren scrutiny
Empower defends private market access in 401(k)s in response to Warren scrutiny

Sen. Warren has warned of private market investment risks due to opacity, illiquidity, and past regulatory issues.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.