Major players are acquiring independent broker dealers with increased frequency, leaving advisors caught up in these sales to wonder what the impact will be on their business. Here are four actions to take to find out.
As an independent advisor whose broker dealer was just sold, no doubt the news can be unsettling. Because whether you’re content at your current broker dealer or not, an acquisition means that change is coming—and no one really likes change.
The good news is that a sale can lead to positive change, since acquirers typically have the scale and financial resources needed to modernize and enhance a platform that may be lagging, thereby making it more competitive.
That said, an acquisition often upsets things like culture, service, and pricing. So, it’s natural for an advisor’s initial response to be a mixture of excitement, deep concern, and, in some cases, outright panic.
What we tell advisors who are confronted with a situation like this is the following: Stop and take a deep breath—and, most importantly, use this as an “opportunity” to regain control of your business life. If change is coming, make sure that it is on your terms by taking these four important “next steps.”
- Define your goals and agenda. Without knowing what you are looking for, it’s impossible to weigh your options. Now is the time to dig deep and determine what you really feel will be best for your clients and your business life both now and in the future.
- Start the vetting process. Conducting due diligence on the acquiring firm’s offerings, platform, and retention package is critical. You might be surprised to find that the grass is actually greener with the new broker dealer if it provides the additional resources needed to take your business to the next level.
- Get educated on the industry landscape. The decision to stay or go rests on having a complete picture of not only the acquirer but also other comparable options in the ever-expanding independent landscape. There are high-quality broker dealers offering significant transition dollars and, in many cases, superior client service, technology, and support. And, if transitioning to the RIA space is something you’re curious about, but perhaps see as a bridge too far, there are supported RIA platforms with comprehensive offerings and turnkey technology and investment platforms that will ease the transition.
- Connect with trusted support. Contact an objective and experienced recruiter to identify opportunities that are well-aligned with your goals. This is an important time to remain focused on your clients—and the best recruiters will streamline what can otherwise be an arduous process, leaving more time for you to do what you do best.
Any time a firm is sold, advisors owe it to themselves – and, as fiduciaries, to their clients – to ensure that their firm is, indeed, the very best choice. After performing due diligence, you may find that the acquiring BD is actually the right one for you, or you may find that better opportunities exist elsewhere.
Ultimately, it’s your responsibility to be proactive in the role you play in shaping the future of your clients and yourself. So, follow these four steps to reclaim your power and ensure that change comes on your terms as you forge the path to your best business life.
Some helpful links for IBD Advisors:
The 2025 Annual Report on Transitions and Deals for Financial Advisors – 2024 Activity Data
Data-driven insights and analysis on advisor transitions, deals, and the evolving wealth management industry landscape.
Going Independent with an RIA vs. IBD: A Comparison Fact Sheet
When it comes to freedom and control, there are key differences between the independent broker dealer (IBD) and registered investment advisor (RIA) spaces that every advisor should be aware of.
The Independent Advisor’s “Gut Check”
Many advisors affiliated with broker dealers find themselves at a point in their careers when they question whether where they are is indeed the right place to best serve their clients. It’s at that same point when you realize that what got you “here” may not get you “there”. That’s why we created the “Gut Check for Advisors at Independent Broker Dealers”—to provide you with benchmarks to evaluate your current broker dealer, as well as any others you may consider.
