Decision Tree of Independence
Veteran industry consultant Scott Steele joins Garrett to discuss the options facing Advisors once they make a decision to go independent. What are some of the questions they face and what are the results of each decision and how they impact your practice? Garrett and Scott walk through the decision-making process to help Advisors better understand the questions they should be asking to get to the outcome they are looking for as simply as possible.
If you would like to discuss this process or explore your options, feel free to reach out at 919-561-2436, or email Garrett@theadvisoradvocates.com. You may also use Garrett’s Calendar Link to schedule a call at your convenience. And to contribute to organizations aiding the relief efforts in the North Carolina mountains, please visit the Hurricane Helene Support Resource page.
Picture Perfect Sunset Plans
Each Advisor envisions their retirement and legacy plan in their own unique way, just like their clients. Garrett Layell breaks down the seemingly endless list of options Advisors have for succession planning, and how the top Advisors approach this process to create the best outcome for their practice.
If you would like to discuss this process or explore your options, feel free to reach out at 919-561-2436, or email Garrett@theadvisoradvocates.com. You may also use Garrett’s Calendar Link to schedule a call at your convenience.
Minimum Size to Go Independent
How big does an Advisor's business have to be to survive as an Independent? Even 10 years ago, the answers to this question were all over the map, and often misunderstood by Advisors. Technology enhancements, competition, and COVID, have drastically reshaped the industry in a short period of time, making it easier and more confusing than ever to take your practice independent.
The average Independent Advisor will net around twice as much income as an average Employee Advisor. But sometimes Advisors forget the reciprocal of this truth: An Independent Advisor needs half as much AUM to make the same amount of money as an Employee Advisor.
There are a lot of sound reasons for an Advisor to stay in an employee relationship, and Advisor Advocates fully supports Firms who offer stability to Advisors who thrive in a team environment. But far too many Advisors stay in difficult situations because they overestimate the challenge of being independent, both economically and practically. In this episode, former Independent Advisor Garrett Layell unpacks the decision to start a small independent practice and helps Advisors outline the decision tree to help them determine if their practice is large enough to survive as an Independent.
If you are an Advisor exploring your options or a Firm hoping to better position yourself to grow your team, feel free to give Garrett a call at 919-561-2436 or send an email to Garrett@theadvisoradvocates.com if you’d like to chat about any questions you may have.
M&A Valuations and Deal Terms
How much is an Advisory practice worth? This is a loaded question that always gets the starting answer of: it depends. On this episode, we dive into what it depends on, more specifically, and what to expect for both sides of the transaction. Most of all, how can you maximize the economic value of the sale of a practice.
The value will ultimately be determined by the following:
Revenue Profile
Client Relationships
Risk sharing between buyer and seller
Resulting Partnership
To learn more and find out how to maximize the value of your practice, visit advisoradvocates.com or call Garrett at 919-561-2436 (text first), or send an email to Garrett@theadvisoradvocates.com.
So, You Want to Start an RIA?!
Financial Advisors debating total independence typically include the option of starting their own RIA. It is an appealing option giving the Advisor total control over every aspect of their business, most critically, their revenue.
Veteran former Advisor Garrett Layell discusses the process and the decisions aspiring RIA owners must make about compliance, technology, custody, business strategy and marketing, as well as how Advisor Advocates offers a unique way to co-pilot the launch of a new Firm.
Turnkey RIAs: Your Invisible Partner
Financial Advisors are entrepreneurial by nature. Many begin their careers as Advisors under someone else’s flag, enjoying the unlimited opportunities the industry offers, before eventually settling on the decision that it is time to start their own Firm. However, that decision brings with it many more decisions to be made, starting with the decision to form your own Registered Investment Advisor or affiliating with an Independent Firm.
Independent Tuck-Ins: The Sweet Spot for Advisors
One of the best kept secrets in the financial services industry is the Tuck-In model. One of the best descriptions I’ve ever heard for this is a “hotel for independent financial advisors.” When I left the employee advisor world for independence in 2013, I was unknowingly at the time being introduced to my first tuck-in firm. A collection of Independent Financial Advisors operating under one roof sharing one brand.