Are Independent Advisors Built for Accelerated Growth? Financial Advisors Must First Discover Their Sustainable Model, and Then Implement

Fourth aRIA Whitepaper Caps 4-Part Series by Providing Financial Advisors with Blueprint; Independents can and will remain ahead of wire and “wired-house” advisors in growth and consumer appeal; Know your BATNA: Best Alternative to Negotiated Agreement – it may not be what you think; Getting into M&A and advisor recruiting is as difficult, perhaps moreso than starting a business from scratch.

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At aRIA, we are not afraid to share our success stories and we show advisors how to build a firm to last for generations - John Furey, Managing Member of aRIA

Phoenix, AZ (PRWEB) May 08, 2013

The Alliance for RIAs (aRIA) today released the fourth of a four-part whitepaper series for advisors called Creating Value and Certainty Within Your Independent Advisory Firm. The series of papers is based on the combined experience and observations of the six aRIA members, all RIAs who collectively manage over $20 billion of client assets. Each aRIA advisor has demonstrated a track record of extreme asset and revenue growth and is providing leadership on how advisors can run a better business.

The fourth installment in the value creation series, titled “Realizing Your Ideal Model” moves from strategy to tactics, and tells advisors who aim to stay independent how to do so. Many advisors have expressed a desire to grow aggressively, but are not willing to make the sacrifices and material investment to execute effectively.

Some key issues identified as pertains to growth and recruiting/M&A:

  • Numbers game – advisors will “kiss a lot of frogs” to find the right match
  • Accepting any/all comers is not an option – advisors must be selective
  • It really IS about the money – every deal must be accretive for all sides
  • You WILL have to go selling – no one will hand you books of business
  • Your growth story and messaging must be ready for show and tell

Independents may be the fastest growing segment of the financial advisory industry, but the wirehouses are awakening, and the consolidators are driving scale similar to their wirehouse counterparts. Recent thought leadership outlines a bleak future for the independent RIA. So whom will you the independent firm model itself after?

“The time for talk is over – if independents want to remain the fastest growing segment of the industry over the next 10 years, then we need to get real about business management and what it takes to execute a growth strategy” says John Furey, principal at Advisor Growth Strategies, LLC and Managing Member of aRIA. “At aRIA, we are not afraid to share our success stories and we show advisors how to build a firm to last for generations.”

The group previously indicated to advisors that their valuations might need re-thinking – now they finalize the “Enterprise Value Creation” series by telling advisors exactly what their options are for a sustainable model. It may hinge on BATNA, or Best Alternative to Negotiated Agreement. This is the best option for an advisor if a deal falls through, and advisors should not accept anything less than their BATNA in any negotiation, buying or selling. aRIA’s final series paper outlines the concept in detail. An advisor’s BATNA could include not going it alone and seeking alternative model options.

“I started my RIA in 2002, and we’ve grown considerably, twenty-fold since inception” says John Burns, President of Exencial. “But it was full of challenges as well as successes. We at aRIA feel it is high time all independent advisors had access to our knowledge, our resources and our networks – this space is here to stay and will not be ceding any ground to either wire or “wired-house” (online) advisors anytime soon.” The details of Exencial’s steps to accelerate business growth are in the white-paper.

Paper #4 is the last in a series designed altogether to raise the awareness level of independent and wire-house advisors as to the challenges and opportunities that await them in this space.

aRIA will begin releasing a series of case studies in the near future as well as speaking to advisors at industry conferences and events, to help them understand and achieve true enterprise value.

Download the full, free copy of this whitepaper, and all of aRIA’s thought leadership, at: allianceforrias.com

aRIA (ah-ree-uh) group members include Brent Brodeski, CEO of Savant Capital; John Burns, Principal at Exencial Wealth Management; Ron Carson, CEO of Carson Wealth Management Group; Jeff Concepcion, CEO of Stratos Wealth Planning; Matt Cooper, President of Beacon Pointe Wealth Advisors; and Neal Simon, CEO of Highline Wealth Management. Each has proven his ability to build and grow highly successful advisory firms by industry standards.

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About aRIA

aRIA Group, the alliance for RIAs, is a “think-tank” study group comprised of six elite RIA firms that collectively manage more than $20 billion in client assets. The group, managed by John Furey of Advisor Growth Strategies, offers insight for advisors considering ways to enhance their firms’ enterprise value. Members include Brent Brodeski, CEO of Savant Capital; John Burns, Principal at Burns Advisory Group; Ron Carson, CEO of Carson Wealth Management Group; Jeff Concepcion, CEO of Stratos Wealth Planning; Matt Cooper, President of Beacon Pointe Wealth Advisors; and Neal Simon, CEO of Highline Wealth Management. The group meets regularly, releasing thought leadership pieces of interest to both independent and wire-house advisors interested in exploring long-term growth strategies. On the web at: http://www.allianceforrias.com

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Contact

  • Sandra Lee
    FiComm Partners, LLC
    646-568-3182
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