Questions to Ask During an Acquisition


  • What transition assistance is the new BD offering advisors as part of the acquisition?
    • Compensation/Transition Loans?
    • Individuals on-site/available for training?
  • What is the acquiring firm’s history of acquisitions?
    • Do they have an experienced team in place that has done this before?
    • Will existing service levels suffer? Will it in the future?
  • Does the new BD have experience with your existing clearing firm?
    • How will data convert?
  • Does your business model fit with the ideologies of the new BD?
  • Is the new BD honoring pricing from your old firm? If not, how will pricing changes affect your business?
    • Will your payouts change?
  • Is the new BD providing similar E&O coverage?
    • Is it providing tail coverage for prior acts?
  • Does the new BD have the sponsors/products/TPAMs that you currently use, or are you going to have to switch to new products approved at the acquiring BD?
  • Is the new BD friendly to independent RIAs?
  • Has your new BD made decisions related to the DOL fiduciary rule that will require changes in your business?
  • Is the new BD prepared for the second part of the DOL fiduciary rule? Is it honoring the Best Interest Contract Exemption (BICE)?



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