- On March 20, 2017
We get a lot of requests from RIAs and indie broker dealer principals seeking to hire tuck-in advisors to help grow and diversify their firms. The tuck-in advisors we speak with who are looking at their career options have expressed different reasons for what they are looking for in a new firm. While the list is long, the top 3 priorities are growth, growth and growth.
Advisors with less than 15 years experience in the $10MM to $30MM AUM level want the path to be at the $30MM and $50MM AUM levels. One of the most common comments we get from tuck-ins, “I want to get to the next level.”
10 ideas to appeal to growth-minded tuck-in advisors:
- Provide some form of quantity of warm leads (walk-ins/referrals/marketing efforts).
- Consider carving off the least serviced clients (and/or clients you believe would transfer well to another advisor) and let that interested advisor be the service advisor on those accounts.
- Consider creative and affordable transition bonuses through bonus dollars paid for every $1MM in assets transitioned. Paying $1,000 per $1MM after assets are transferred is a way to compete with the 10% to 20% recruiting deals many independent broker dealers are offering. Paying a $20K first year bonus to an advisor who brings over $20MM is an investment no-brainer.
- If you are acquiring practices consider picking the best clients for yourself then provide to your tuck-in advisor(s) the other client relationships they can service.
- Consider offering a path to equity for the right advisor.
- Consider providing a marketing budget for the advisor to utilize with a “results matter” perspective in continuing or increasing marketing cost contributions.
- If you are growing and have room to allocate some of your clients to a new advisor, consider offering them a matching growth strategy where you match every new client the advisor brings in on their own, with one of yours.
- Offer transition dollars during the first 3 months of transition. Growth minded advisors don’t want to take too much of a step backwards before they take a leap forward with your firm. Consider financially helping during the transition and offset or minimize the tuck-in’s loss of income during the transition.
- Offer a succession plan where the advisor is able to slowly begin taking over your (or a senior advisor’s) business as succession timelines are triggered.
- Not all tuck-ins are early career advisors. There are plenty of advisors in this asset range who will be retiring soon. Consider adding a turnkey tuck-in succession plan. For advisors looking to retire within the next few years, show them how you’ll help them exit in the best possible way financially for the advisor and the service to their clients.
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