Friday, 15 September 2023 11:20

Advice on Acquiring a Practice

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For financial advisors who are serious about growth, the most effective strategy is to simply acquire another practice. Of course, this requires significant resources in addition to a well-thought out plan to integrate the new practice into the existing one. It also means making tough decisions when it comes to headcount, organizational structure, and management. Most importantly, there can be no compromise when it comes to the client experience on both sides of the ledger. 


Advisors should consider this possibility especially as it’s going to be a buyer’s market given that so many advisors are nearing retirement age. Based on research from Cerulli Edge, nearly 40% of advisors will be retiring over the next 15 years. Additionally, advancements in technology mean that overhead costs don’t necessarily have to meaningfully rise with an acquisition. 


According to Bill Williams, the president of acquisitions at Ameriprise, the most important step is to conduct proper due diligence to ensure that no regulatory issues arise, and there is no issue with the financials of the firm being acquired. He also says that a common mistake is to use an acquisition to solve a problem. Instead, the buyer must come from a position of strength which means that you have a thriving, profitable practice with a healthy culture. 

Finsum: While there are many growth strategies for advisors, acquiring a practice can supercharge growth. Here are some important considerations. 



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