Growing the Value of Your Advisory With a Successor


Recorded at the FSI OneVoice 2022  Presented by: 

Advisorpedia interviewed the Co-Founder of FA Match, Ryan Shanks, at the FSI OneVoice Conference in February, 2022.

"What we're seeing that's interesting in the RIA sector of the industry is recruiting advisors with no books. So it's really interesting those those firms start to grow and hit sort of a critical mass.

They're actually looking for a CFP with a competency level, they can sort of insert and service their current client base. There's an interesting twist that's going on there, where they're oftentimes the preferences someone without a book, versus someone with. That's interesting.

In terms of independent broker dealers, that's sort of a lot of what we're seeing here at FSI. These folks are continuing to compete with one another and recruit, they're still continuing to sort of work upstream. But we're starting to see succession become much more real in the lives of these firms. And these advisors because the age continues to get so much older.

Pretty much everyone wants to be a successor to someone else. Right.

There's this assumption that there's an unlimited supply of advisors willing to enter into a succession. As we coach the advisors that are on the succession side, they need to start thinking about retirement, we tell them that they really need to be thoughtful about the compatibility, they need to look and see there's operational lift they can get from the firm that becomes the successor to them. And we're actually encouraging these advisors to not really look to another individual advisor, as a successor, but look to an organization that's got the infrastructure and the processes. So they can actually create some lift, because typically what happens is when you want to step out of the business, you do the transaction to sell the business, but then you stay into it for another two to five years. So you can be more efficient than you ever were. In your final days of succession.

You might actually see some efficiency create a lift in revenue, and a lot of times those transactions will true up. So you could grow the value of your business with the successor and get rewarded in an increase in that valuation."

Resources: FA Match

Related: Advocacy Priorities for the Independent Advisor