According to WealthManagement.com, financial advisors are switching firms at a rapid pace. Even veteran advisors with large books of business are making transitions as they near retirement age. The coronavirus pandemic has accelerated the independent advisory landscape considerably. Not only did it vastly change the way we work, but it exposed larger organizations that claim to have advisors' best interests at heart
WealthManagment.com suggests four necessary steps advisors can take to ensure they are approaching a potential change wisely:
- Define Your Business Model and What you Want it to be in the Future
Once you can determine what moves the needle for you and what you lack, you can pair those priorities with various firms that offer potent resources to take your business to the next level.
- Approach Due Diligence Properly, Avoid Taking Shortcuts
The ideal people to talk to are those advisors previously at your firm that made a transition before you. A prudent option is to work with a knowledgeable recruiting organization, preferably an independent consultant.
- Examine a Potential Firm's Culture, Ethos, Client Service Philosophy, and Meet as May Team Members as Possible
When a firm's business philosophy meshes with an advisor, they are more likely to stay, be more content and have a more successful career. Networking with other advisors is a great way to spend quality time with leadership and ask tough questions.
- When Contemplating a Deal, Think Three to Five Years Out, Instead of the Next Six Months
If you want to make a strategic decision rather than just a move, consider what the long term looks like for you. The real payoff will come down the line when you double or triple your assets organically because your new firm enables you to boost your growth and cares as much about your clients as you do.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.