Monetizing Your Practice
Transitioning to another Firm
- Reinvigorate your practice by moving to a better suited firm
- Upgrade your technology
- Upgrade the service you receive
- Offer your clients enhanced products and services
- Receive generous Transition Compensation packages from your new firm
In deciding whether or not to leave your current firm for “greener pastures,” there are myriad factors including: compensation, autonomy, wirehouses vs. independence, etc.
For many advisors, money is the key contributor to this decision. Making the transition from one broker-dealer to another is often complemented by a generous up-front bonus, and the annual revenue paid to advisors can vary greatly from one firm to another.
In many cases, advisors are unhappy with the control at their firm or wirehouse. It’s typical for advisors to seek more autonomy to run their practice in the way they best see fit.
Philosophy, culture and products/service offerings are also important components in any transition. Alongside monetary gain and the feeling of independence, you'll likely want to work for a company in which you feel comfortable and with which you share a mission. In many cases your book of business is your greatest asset, and you’ll also want to ensure your clients’ needs can continue to be met in the way they’ve become accustomed to.
This transition is not one to be approached lightly. Our professional advice can help guide you in the right direction, and get the highest valuation for your practice. We understand that you are approached by branch managers and recruiters every day. We can negotiate a higher transition bonus for you.
Succession Planning & Funding
- Internal or external monetizing strategies
- Generation one to generation two funding strategies
- Act as a mentor to a younger advisor
- Sell your book of business to the next generation
- Give your clients practice continuity
As you consider strategies to monetize your practice, you will likely want your clients to continue receiving the thoughtful attention and expert advice you have afforded them throughout your partnership. Your clients deserve a second generation of advisor who will be there for them as you were, through the ups and downs of the markets.
There are firms that provide senior advisors with a program that will add a junior advisor to their team, fully prepared to train and guide the younger advisor in preparation for transition. During the years in which you train the new advisor, it is wise to reach out to your clients and let them know you will be leaving the industry and that they will be left in capable hands. You don’t want your clients to feel stressed by your retirement – you want them to feel relieved because you have found a trusted successor.