“Speaking of … ” PART 1 of 3

Stuff that woulda’, coulda’, shoulda’ be up for discussion as we head into 2021 in the Securities Industry: Book Acquisitions, Partnerships and Working From Home

 

BOOK ACQUISITIONS

 

Great idea and a quick way to grow your assets under management (A.U.M.) – Not quite!  Books for sale are not there like low hanging fruit. the larger firms (aka banks) have over the past number of years put a serious lock on assets walking out the door in the event of a broker retirement.  Not to say that books are not out there, but the buyer line-up is a long one and the asking prices can be astronomical!

 

PARTNERSHIPS

 

So, on to partnerships with a broker nearing retirement or one who has not made the cut and who is anticipating being escorted to the exit or the new team.  This is also a great idea for adding A.U.M to your book – – –  with frequent lousy results.  Very often personalities, business styles, client compatibility and the timing can be enduring factors to consider when hoisting a glass to a great merger.  In my years of conducting business marriages between advisors, I would say I subsequently presided over a divorce rate of 90%.  Anyway, there is a lot more to consider in these areas and I’m more than happy and willing to discuss at length with anyone who has and interest on the subject.

 

WORKING FROM HOME 

Is this it?  Am I destined to be a suburban fixture around the dining room table? Actually, the kitchen table is just as good, and a lot of advisors are happy to be there.  They are technically plugged in, the phone works and no one is giving them hell for showing up to work in their pyjamas.

 

Conceivably, even though the proverbial crystal ball is just a hunk of glass, the future will generate some new approaches to advice giving.  Firstly, with the Covid 19 Pandemic moving past a traditional gestation period, you’ll find that an increasing number of financial advisors are realizing they don’t need the trappings of an office whether downtown or in the burbs.  With that, of course will come the question – – – at $500,000.00 in production with a 40% payout, why can’t I pick-up another 5 points since the only space and facilities I’m using are my own?   For the dealer however, there is another looming risk factor. The Covid winds are beginning to blow serious financial advisors away from the traditional employer model into more independent models.  This trend is becoming more visible these days and while it’s not accelerating in growth as is the American RIA model, it is out there.  Worth a look?  Damn right and Curry Henry Group can be your eyeglasses.