One of the fastest and most successful ways for a financial advisor to grow their practice is through acquisition of a retiring advisor’s book of business. While on the surface these transactions may be extremely enticing, there are number of legal nuances at play that need to be considered before moving forward with any deal.
In this episode of Advisor Talk, Elite Consulting Partners CEO Frank LaRosa is once again joined by Brian Neville, Founding Partner of Lax & Neville, for a discussion which covers the legal complexities surrounding acquiring a book of business and the implications these agreements have on an advisor’s ability to transition in the future.
Key discussion topics include:
*how agreements for acquiring books of business vary between the wirehouse and independent space, and even from wirehouse to wirehouse.
*why due diligence is the key to successfully acquiring another advisor’s book and how thoroughly reading and understanding the agreement you are committing to is essential.
*protocol vs. non-protocol firm agreements for book acquisition and how these agreements can impact the portability of your book if you want to transition to another firm.
*why the nature of the relationship between the seller of the book of business and the buyer matters and the importance of effective and efficient communication to the acquisition process.
*the imperative of seeking your own trusted legal counsel when navigating a deal to acquire a book of business.
Frank and Brian get specific, discerning potential liabilities and offering key strategies advisors can put into action now if acquiring a book of business is part of their operational strategy. Be prepared to bookmark this episode as it will be one to refer to again and again for its detailed discussion of the subject.
Ep.95: Legal Perspectives Episode 3 with Brian Neville, Founding Partner of Lax & Neville
