Industry Update: What Financial Advisors Need to Know About Growing Through Recruitment and M&A

A conversation with Louis Diamond

One of the major motivations for advisors who choose independence is the desire to build an enterprise through recruitment of other advisors and the opportunity to participate in a frothy M&A marketplace.

And even non-enterprise builders are drawn to the ability to selectively deepen their bench via recruitment plus having the ultimate flexibility over who they hire.

But inorganic growth opportunities are not exclusive to independent firms. Although wirehouse advisors are more limited, they can grow via “acquisition” through their firm’s sunset programs and by selectively adding team members through their firm’s training programs.

With M&A transactions on target to break another record and recruitment activity at one of the highest levels we’ve seen in years, the ability to successfully execute an inorganic growth strategy has become more complex and highly competitive.

In this episode, Mindy and Louis discuss what you need to know about building your business through inorganic growth, including:

Why recruitment and acquisition are so appealing to advisors and firms—and what they are finding the power of M&A really is.
How the opportunity to recruit and acquire is different as an independent—and what you need to know if you’re at a wirehouse or broker dealer.
How it’s possible to recreate a wirehouse sunset program as an independent—and why this has become a popular driver towards independence for retiring advisors and their successors.
How a smaller, independent firm can compete with larger players—and how to think about standing out from the ultra-competitive field.
Plus understanding how valuations and deal structures compare to recruitment packages offered from traditional firms—and much more.

It’s an episode that will answer the most frequently asked questions by wirehouse advisors considering inorganic growth options, as well as firm owners who are looking at recruiting and M&A to drive growth.

Podcast: Play in new window | Download (Duration: 39:15 — 53.9MB) | Embed

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Related Resources:

Exploring M&A: Finding the perfect match between buyers and sellers
Acquirers typically fit into one of 4 profiles: Here’s how to identify which types of sellers will align best with each. Read->

What’s the ‘Real’ Value of a Financial Advisor’s Business?
Headline-making M&A deals in the independent space have many employee advisors wondering what their business could be worth on the open market. Here are 3 valuation scenarios to address that curiosity. Read->

Ready to sell?
The 7 key factors driving your firm’s value. Read->

Billion Dollar Sellers: Tracking the Shift of RIAs from Buy-Side to Sell-Side
In a red-hot M&A market, $1B+ firms that may have once been considered buyers are being acquired like never before. What’s driving the change? Read->