Advisory Firms: Growth by Design
FA Insight 2010 Press Archive
“Most firms are just focusing on the obvious — how much the client has in terms of assets, and how old she is basically.”
Dan Inveen, in “Target Practice”
Registered Rep Advisorland. November 1, 2010.
“There are a lot of willing sellers out there, which should only escalate in numbers,but there’s also a lot of competition, including from local market leaders who want to dominate a region. And RIAs have more information, resources and platforms available to them than ever before. Aggregators have their work cut out for them."
Dan Inveen, in “Make Room For More Wealth Firms With National Reach”
Registered Rep. October 20, 2010.
“There is a proper way to go about letting go of those clients. Make sure you are able to offer clients an alternative in terms of where they can go to get a more appropriate level of service. Some advisors postpone that conversation indefinitely but it’s one that every advisor should have.”
Dan Inveen, in “Advisor Confessions: Dealing With Clients From Hell”
Forbes. October 18, 2010.
“Where financial advisers add the most value is by helping clients stay committed to realistic return assumptions, retirement contribution commitments and spending limits.”
Dan Inveen, in “How to Build a Million Dollar 401k”
MSN Money. October 13, 2010.
“You have to build the firm in a way that the client experience is tailored to that prospect, so you can retain them.”
Dan Inveen, in “Secrets of Top-Performing Independent Firms”
Financial Planning. October 5, 2010.
“Firms that have institutionalized their processes will always be worth more. A firm that has created transparent and repeatable processes for running its business is more valuable than a firm where all the knowledge resides with the owner.”
Dan Inveen, in “To Market, to Market”
Financial Planning.
October 1, 2010.
“Less noticed is that a new breed of RIA acquirers appears to be emerging. These are firms who aren’t motivated by short-term profits, rather their interests are in building and managing national-scale advisory firms for the long-term.”
Dan Inveen, in “One of a New Breed of Roll-ups Taking Center Stage, United Capital Is Churning out Deals Again”
RIABiz.
September 20, 2010.
“IBD executives need to ask if their firms are a business building partner for their top advisors. Are they staying ahead and anticipating those advisors' needs while coming up with solutions? Those are questions every b/d should be asking if they want to stay relevant.”
Dan Inveen, in “Outgrowing the Series 7.”
Registered Rep. September 1, 2010.
“Compensation is a big piece of the puzzle but it must be complemented with other valued benefits in order to attract and retain key individuals.”
Dan Inveen and Eliza De Pardo, in “People and Pay: Use the Lebron Rule of Retention.”
Investment Advisor. September 1, 2010.
"In order to be effective, a niche must be very specific….Retirement is a life stage, not a niche market,”
Eliza De Pardo, in “How to Build a Niche Practice.”
Journal of Financial Planning. August 2010.
“One of the most important questions that principals of independent advisory firms should ask themselves is why they would hire a breakaway broker…When screening candidates, principals should know whether they are adding capacity to handle an influx of clients, for instance, or if the potential recruit has a technical expertise that the firm needs.”
Kim Dellaroca, in “RIAs Can Look to Other Channels for Growth.”
Financial Planning. July 17, 2010.
The typical advisory firm expects to increase from five to six full-time-equivalent employees in 2010, the largest increase since the median firm size grew 25% in 2007, according to the company’s 2010 FA Insight Study of Advisory Firms: Growth By Design.
“This signals that firm owners are regaining confidence in their ability to generate growth over the coming years,”
Eliza De Pardo, in “RIAs Are Rushing to Take Advantage of a Fire Sale on Talent”
RIABiz. July 15, 2010.
"You need to implement processes that are repeatable and transferable as opposed to the knowledge on how to do things just existing in staff members' heads."
Dan Inveen, in “Preparing a Wealth Advisory Business for Sale.”
Reuters. June 14, 2010.
“The LPL IPO serves to further legitimize the independent broker-dealer model as a force to be reckoned with, as several firms are clearly challenging the leadership position of the wirehouses, if not overtaking them altogether.”
Dan Inveen, in “LPL IPO: Whoopee or Big Whoop?”
Financial Advisor. June 9, 2010.
"While offering a greater level of compensation helps to attract and retain more talented staff, ultimately it is not what you pay that matters most. How you pay with regard to the structure of compensation is the key factor behind motivating desired work behavior."
Dan Inveen and Eliza De Pardo, in “The Business of Advice: Paying to Fail.”
Investment Advisor. June 1, 2010.
“I think advisors are now a little more confident to take time out and work on their business versus just working in the business and putting out fires.”
Dan Inveen, in “Rethink. Reorient. Restructure.”
Financial Advisor. May 2010.
“According to the October 2009 FA Insight Study of Advisory Firms: People and Pay, sponsored by TD AMERITRADE Institutional, standout firms devoted a smaller proportion of revenue to compensating administrative, support and technical staff than the rest of the firms in the study. These firms have systems in place that facilitate the deployment of lower-cost labor to achieve the same results as other firms deploying more experienced staff.”
George Tamer, in “It's Not All About the Technology.”
Financial Advisor. April 8, 2010.
“I would contest that no one wants to hire the cheapest heart surgeon or the cheapest financial advisor! However, the ability to define a distinct offer to the market and communicate the value delivered will dramatically impact on their ability to grow and compete.”
Eliza De Pardo, in “James Surowiecki Has Lessons for RIAs About Marketing's Mushy Middle.”
RIABiz. April 2, 2010.
“A firm that adds staff before defining its targeted future organizational structure and the positions needed to support it is destined to be just a collection of individuals.”
Dan Inveen and Eliza De Pardo, in “Structuring for Success.”
Investment Advisor. March 1, 2010.
“Every player is trying to stand out and this is a good way to get some publicity in the trade press. That said, I think these moves are more about raising profile than substantive measures that will have a direct impact on attracting additional business for the custodians.”
Dan Inveen, in “Cheap and Cheaper.”
Registered Rep. March 1, 2010.
“We’re in the middle of this shouting match between custodians and wirehouse executives. The wirehouses may be feeling a little threatened, because this trend is talked about so often.”
Dan Inveen, in “Clients, the New Breakaways.”
Registered Rep. February 23, 2010.
“One of the biggest challenges for founders looking for an exit plan is finding someone they know well, they are compatible with and can trust to maintain the legacy of the business…Frequently your own offspring can be the best fit to this criteria.”
Dan Inveen, in “All in the Family.”
Registered Rep. February 23, 2010.
“The stress testing endured by advisory firms over the last 18 months yielded an uncomfortable, and at times overwhelming, level of pressure for advisory firm shareholders and management. For an exclusive group of firms that we call ‘Standouts,’ however, performance improved as the heat was applied.”
Eliza De Pardo, in “Advisor Exceptionalism.”
Investment Advisor. January 1, 2010.