In our Experts Ask series, we flip the typical interview approach and let the experts post the questions they think advisors should be asking themselves and the industry.
In this latest episode we talked with Brian Church, CEO of Advisory DNA, who coaches advisors through making high-impact business decisions. Brian’s questions center on what advisors should consider when they weigh making a move between broker dealers or going independent.
Will this move be better for my clients?
One of the most important questions is will this move add value to your clients? Today’s clients expect higher quality service and more value from an advisor relationship. Brian says advisors need to evaluate whether the move will give them more or better access to the best resources available in the financial advisory ecosystem. If the answer is yes, then the move is likely to improve their ability to offer an exceptional client experience. That should be considered first and foremost in any potential move.
Will a new professional home be better for me and my employees?
In addition to the client experience, the advisor experience is critically important to consider. Looking at how the move will impact you and your employees is more of a qualitative calculation – it’s not going to show up in black and white in a contract. But, Brian says, what isn’t in print is often the most important. He recommends that advisors resist looking at this decision through only a quantitative, economic lens and also consider if this move is a behavioral and cultural fit for their team. If there’s not good alignment in terms of values and culture, that should give an advisor pause, no matter how good the move looks from an economic standpoint.
Is this move better for us all from an economic standpoint?
The importance of qualitative factors like client and advisor experience, doesn’t diminish the significance of the quantitative side of the deal. When considering whether the move makes sense from a financial perspective, Brian advises analyzing whether the move will enable growth and scale. The more people an advisor can reach and help, the more revenue they can generate. He says to also look at factors like payout and transition assistance. These considerations, weighed alongside the client and advisor experiences, will give an advisor a complete picture of whether a move makes sense. All these factors are symbiotic and should all be part of the equation in order to predict if a move is going to produce the right outcome.