When the merger is finalized you can expect a total of 11,300 affiliated financial advisors, $450 billion in client assets and nine broker-dealers under the Advisor group umbrella. In a shift this size, there will be significant changes in field management, resources available to advisors, and in your client’s experiences.
From the advisors perspective, there will be changes in the trading platforms and CRM that will not be apparent until you actually use the software.
Clients will need to figure out how to read a new monthly/quarterly statement and figure out a new online portal (which the advisor has no control over).
If you are not 100% certain that this is the best move for you and your clients, we might have some advice for you. Mergers like this in the financial services industry are somewhat common, even more so when they are owned by private capital groups. If you are looking to have a voice in the direction of your B/D’s growth and how they support the advisors, this might not be the best option for you.
Having so many separate broker dealers underneath multiple umbrellas can cause issues for the upper level management who might be trying to manage to the “LCD rule” or “Lowest Common Denominator”. Compliance at large broker dealers generally manages to the LCD rule by asking “what is the dumbest thing an advisor can do to get us in trouble?” and then bans that for everyone.
This transition might also be a wrong decision if you are looking to monetize your business. If you stay put and move broker dealers to Securities America, you will have to go through all the issues of a change and not receive a penny. If you decide to look around at other broker dealers and find somewhere that is a better fit, you can look at transition compensation of between 50% to 350% of your trailing 12 revenue… that type of compensation could help hire support staff, ramp up marketing or help you pay off another note.
You may also be looking for more control in who your successor is. By looking around at other broker dealers, you can identify a larger pool of potential successors that will take over your business and treat your clients just as you would after you retire.
Some advisors may see this consolidation under Securities America as a positive change. If this is something that gives you energy and you are genuinely excited about it, then by all means, go along with it. If you truly feel this is in your best interest and, more importantly,100% in your clients best interest with no possible negatives to them, then there is no more looking to do. You found your happy place.
Right now could be the perfect time, because whether you wanted to or not, you are transitioning. The question is: are you going to make the best of it?
Transitioning broker dealers could be the best way for you to provide your clients with the best service your team can. For example: if your client portal is clunky and a hassle for clients, they will be less likely to log in. This means less touch points with clients and a lower probability that they will stay with you. If your senior leadership doesn’t listen to advisors advice and input, technology and services will never get updated and changed for the better.
By looking around and seeing what else is available, you can identify the fit that would be best for you. You can look for the company that fits you and helps you upgrade many things like the trading platform, client portal, the advisor single sign on, upper management, lower fees for the advisor, more involved marketing support, better branding, quicker answers from the back office and compliance departments that don’t give you a different answer for each person you speak with.
Our team at 3xEquity are the professionals when it comes to BD transitions. We will show you the different channels you have available (Bank, W-2, Independent and RIA) and the Pro’s and Con’s of each. We save you the time of interviewing each of the broker dealers you might be interested in by doing a deep dive into your business and analyzing your needs. From here, we give you an independent and unbiased recommendation of BD’s for you to explore. We will even make an introduction to a senior representative of the firm, completely confidentially and discreetly.
Your clients hire you because you’re the expert and deliver a superior result. Hire us so we can deliver you that same experience.
Click on the widget to schedule an initial consultation or complete the form below. Everything we do is 100% anonymous and you don’t pay us a cent for the work we do for you – including helping you negotiate the biggest transition package possible.