A father and son-led independent firm operating under a broker dealer mess with success and launch a “new and improved 3.0” version of their business.
My son Gideon came to me with this wild idea of Drucker Wealth 3.0, a totally new and improved version of basically what had been working for the past half a century….
My response: ‘Have at it!’
Lance Drucker
Chairman
Drucker Wealth
Father and son Lance and Gideon Drucker care about carrying on the legacy started in 1959 by patriarch Bernie Drucker. Drucker Wealth, today is a thriving independent business with a staff of 11 and over $750mm in assets under management. And for Lance’s entire career, 38+ years, their broker dealer had been Hornor, Townsend & Kent (HTK).
So why disrupt a good thing? Why change what had worked for an entire career?
It’s a classic story of a move fueled by the vision of the next generation. In this case Gideon, to evolve and to take the business into the future. As Lance put it, “My son Gideon came to me with this wild idea of Drucker Wealth 3.0, a totally new and improved version of basically what had been working for the past half a century….My response: ‘Have at it!’”
And that was the key to this move. Next generation leadership with the vision and ambition to evolve the business paired with the older generation’s open-minded attitude, trust in the next gen—and willingness to accept that change is not only possible but necessary to ensure the business is positioned optimally for the future.
What fueled Gideon’s motivation to mess with success? As the Druckers business grew, so did their desire to customize every aspect to serve clients optimally. That objective was fundamentally at odds with the independent broker dealer model: A bundled solution integrating investments, technology, compliance, and operations into a one-size-fits-all package which, over time, started to feel limiting.
Leveraging Diamond Consultants to conduct an extensive due diligence process, including evaluating other IBDs and top turnkey RIA platforms, the Druckers did their homework. And along the way it became clear that they prioritized achieving maximum freedom and control. So rather than simply upgrading their broker dealer, they decided to launch an independent RIA since it gave them the freedom to shop for the best solution, price, and execution for every aspect of their business.
So, what changed? The entire chassis that the Drucker Wealth business operated on.
The Druckers left HTK and launched an independent RIA leveraging for custody Fidelity and Altruist to accommodate different client segments and using a new RIA-friendly broker dealer, PKS.
Although a heavier lift than changing broker dealers, a move from IBD to RIA offers greater freedom and control to those that seek it.
As Lance shared, “Change is inevitable, and adaptability is a core attribute of successful companies.”
We couldn’t agree more!
Diamond Consultants is pleased to have represented Drucker Wealth in this transition and looks forward to their next chapter.
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