The Messy Business of Growth by Acquisition

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Most financial advisors start out in the same precarious position – a handful of relationships and a desperate need to grow and scale their businesses. You need to have paying clients if you hope to sustain yourself, yet you need to build relationships and trust with your community first.

When it comes to growing your financial planning firm, there are numerous schools of thought. Those who knock on doors and host free steak dinners still exist, but the primary way to build a practice is through creative marketing and organic growth.

Still, there’s another way to gain more clients that should be considered – the acquisition of other wealth management firms.

Last year, I dove into this process and purchased the practice of a retiring financial adviser. I did this for a few reasons: I wanted to help the adviser transition into the next phase of his life, and I was eager to help his clients continue growing and preserving their wealth.

I’ve also been interested in pursuing this process from start to finish for some time now – not only so I could better understand how it works, but to help others pursue a similar path.

The truth about growth through acquisition

Before you rush out to search for retiring financial advisers, it’s important to understand that acquiring another firm will create more problems than it solves. It’s possible there are deeper issues at hand if you’re truly struggling to attract clients – so buying another firm could be akin to chasing “shiny objects.”