A Sale Can Enhance a High-Performing Growth Culture

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For the past few years, regardless of price, there's been a buyer for every RIA seller. But that won’t continue.

At one end of the spectrum is the “lifestyle practice,” in which advisors get absorbed into a larger firm, ease up a bit, and “take the annuity” generated by an existing book of business. That may suit some acquiring firms that specialize in quick integration to achieve business efficiencies.

At the other end of the spectrum, it’s all about growth. There’s no easing up. Rather, the selling advisor harnesses the resources and reach of the larger firm to turbocharge growth.

As an acquirer, this latter model is the one I know. I am happy to wait a bit longer for synergies and instead put the energy into growth. The idea is to support a firm that’s already in growth mode and steepen its trajectory. I call that “adding rocket fuel to the mix.”

Drawing from conversations and due diligence with RIAs across the country, here are my thoughts for growth-oriented RIAs considering a sale.