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Leveraging Broker Dealer Resources During an Acquisition

Acquisitions can be a positive and exciting way to grow a financial advisor practice. They can also be challenging. There are many resources available to advisors that can help alleviate some of the challenges of finding and facilitating acquisitions. Many M&A consulting firms offer educational programming as well as legal services. However, some of the best resources can be find right inside the walls of your broker dealer.

Help with Finding Deals

Broker dealers invest a great deal of time and money into recruiting experienced advisors. Their team of recruiters are actively engaged in the industry and speaking to interested advisors on a daily basis. Although many of these advisors will choose to stay independent if they transfer over, some of these advisors are looking for a larger firm to tuck into while others are looking for a worthy successor to take over their practice. Building relationships with BD recruiters and positioning yourself as a strong steward of transitioning practices will make you a prime candidate for these opportunities and help you get access to more acquisition deals than you could find on your own.

Broker dealers also want to make sure that practices held by sunsetting advisors stay within the family. Field leaders are the most likely to know which advisors are looking to retire and can make the connections for you. Building relationships with leaders in your region and across you broker dealer will help you stay top of mind when your colleagues are looking for a successor. It also helps to develop a statement highlighting your value proposition and financing capabilities, so they can find you best fit candidates and lay the groundwork for your introduction.

Help Facilitating Deals and Transitions

The success of any acquisition largely hinges on the transition. This is especially true for acquiring outside practices which will require more logistical coordination and client engagement to minimize attrition and impact on client experience. Broker dealers are eager and willing to support these acquisitions and to help you make a good impression on new clients. It may require the support of multiple departments, not just your successions team, in order to meet the demands of the deal and manage the whole process. This is another reason why its valuable to build relationships within your firm, so you can identify the people and resources you need and have them committed to your cause before the deal takes place.

Broker dealers are constantly evolving their internal services, so actively communicate and investigate what is available to you. You only need a couple of internal champions to help you find and source the people and tools you need. It’s also a good idea to build up a strong relationship with a lender so your broker dealer knows you have the financing ready to go should an opportunity arise. The most prepared buyer is the one most likely to get the deal, no matter how good of a fit you are with the other practice. Better to have everything in place beforehand so you can take advantage of your network and leap on any deal before your competitors get a chance.