To The Advisor with No Exit Plan
Here’s the exit plan problem I see facing many independent advisors:
They want to eventually sell their business.
They don’t love the thought of selling to a big-box corporate brand.
They want an exit plan that ensures their clients are cared for.
They don’t know many in that crowd writing competitive checks to acquire businesses.
Add this equation up and you get a lot of independent advisors that see no good option on the table for a successful exit. I get it. As one advisor told me, “I went independent to serve my clients better. I don’t love the thought of selling them back to the mothership.”
One more factor–the industry is changing rapidly, especially with the growth of venture capital shaping the succession landscape. Some love the big payouts, but most have concerns about culture.
Now that we’ve acknowledged the gloomy perspective, I don’t want advisors to think this problem has no solution. It absolutely does, and good news, it feels a lot less like selling your soul.
Lot’s of Indie Buyers, But They Can Be Harder to Find
When you’re comparing mid-sized indie firms to big corporate names for your exit plan, there’s one main difference I point out. If you’re talking to one of the big firms, you generally know that they are in a position to buy, both in terms of capital and process.
When you'd like to sell to a mid-size firm in the independent space, you have plenty of options, but you might want some longer runway to find a succession partner. Now that you’re emphasizing factors like strong culture and client service, you have to find firms that also have access to capital.
Don’t get me wrong–there’s plenty out there that can provide both strong culture and purchase price, but they’re not advertising at the scale of the big corporate firms. They don’t always have hundreds of recruiters on payroll to funnel advisors their way.
They may have 20 advisors, or they may have 300. The scale can shift, but all the same, there’s more responsibility on you to find them.
Start Early, Get Help
If you have high expectations in a succession partner, I can’t implore you enough to start quietly researching early. This can mean everything from performing a self-assessment to help you document your priorities–the needs and wants. This can also mean being more intentional to follow the updates of a few firms that you could see being a good landing spot. Maybe attend an additional conference.
At TheMichaelGordon.com, this is also exactly what I help advisors do. I spend all day everyday networking with advisors, RIA owners, OSJs, BDs, etc. I know the players and can help you rapidly shorten your list of ideal firms–for free.
Whether you're just looking for an exit plan or you want to upgrade your RIA/OSJ for the final chapter of your career, I help top advisors find firms that deserve them.
The initial call and search process are totally free. Start considering your options and do it with a trusted guide on your side of the table.
