RIAs bite their nails when deciding to sell the firm

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.