At Elite, We Know What Firms Will Focus On When Evaluating You and Your Practice

Knowing what prospective financial firms are looking for in new advisors is important to understand prior to meeting for the first time. The type of business, clients, team structure, etc., are all important to new firms. Matching your business to a new financial firm is critical in making your new partnership successful.

There are several key areas that are important to new financial firms when they decide on the type of transition package to offer you. Elite Consulting Partners can help you determine which firm’s offerings best meet your needs, and the needs of your clients.

Below are a few areas that firms look at when getting to know you:

Production:
Firms generally start their questions with your production, client asset size and product mix. This business is about production and assets. Make no mistake: every firm wants your gross and client assets. Various firms look at these numbers differently and have minimums that they will accept before talking. ROA percentage requirements differ from firm to firm. A 1% ROA is highly desired by many firms. Many firms will cap any deal they offer at an ROA of 1.5% of your current client asset base.

Work History:
Firms want to make sure you plan on staying around for a while and will ask about your work history. They will be interested in where you have been, how long you were there, and how many firms you have worked at. This information can actually help or hurt when it comes time to negotiate your transition package. The quality of the firms you have worked for are also are taken into consideration when considering offering you a package.

Fee-based Business:
What percentage of your production and assets are fee-based? Firms will take these numbers into consideration when putting together a deal. Not all firms look for recruits with all fee-based business. There is something to be said for good transaction business. In fact, many firms today are beginning to understand this and pay just as much for transaction business.

CRD and Background
Every firm will require a CRD and background check before presenting a deal. Be proactive with explaining any issues you may have. Any and all prior situations will come out. Every firm will ask you for a written statement explaining each issue. If you have legal documentation, provide it as well. Although having several items listed may give a new firm pause, it will not always prevent them from moving forward with you. Be honest and explain it well.

Business Focus:
Firms want to know what type of business they are buying. They want to understand what you do, how you do it, what your marketing focus is, and how you plan to grow in the future. It is critical to be clear . Managers like to know the people they bring into their branches have a plan for growth.

Mobility of Business:
What type of assets make up your client book, and how portable will they be? Firms want to make sure they’re getting what they pay for. Having details on your product mix is important. The fund companies, managers, annuities, structured products, CD’s, etc., you use are just some of the details you should be prepared to discuss and provide documentation for before your move.

Culture and Fit:
As a former Manager and Complex Director, I can personally attest that this is one of the most important issues managers consider. Managers desire recruits who will fit in with other advisors and the culture of their office, and will enhance the overall morale and atmosphere. It is important to get to know the new office culture, the manager, and the team that runs it.