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

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Mindy Diamond

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 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.

 

LISTEN TO ADDITIONAL EPISODES IN THIS SERIES

 

 

 

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