Securities America Offers Multi-BD Practice Listing Site
"A large part of creating an effective continuity, succession or acquisition plan is networking," said Roger Verboon, Securities America director of business continuity, succession and acquisition planning. "With the joint listing site, Securities America's 1,760 advisors now can connect more easily with each other and with an additional 1,000 advisors at our sister broker-dealers. We've offered practice transition coaching, consulting and tools for more than a decade. The listing site complements Securities America's Practice Transition Center, putting in place the final piece for us to support established advisors through the life stages of their practice."
According to Cerulli Associates 2012 Advisor Metrics, the average age of a financial advisor is 51.5, and the percentage of advisors older than 55 is 39 percent (44 percent for RIA advisors and 46 percent for IBD advisors). As a result, more advisors than ever before are considering the prospect of retirement and the question of what to do with their business. In addition to the financial question of converting a sizable asset into funds for retirement, the decision of selling a practice has considerable emotional effect. Advisors often have poured their life's blood into their practice and hope to see it live after them to serve their clients.
On the other side of the equation, many advisors have found acquiring another practice to be one of the most successful ways to grow a business. When buyers select sellers from the same broker-dealer family, they may diminish the time and manpower challenges associated with repapering client accounts, thereby increasing client retention. Having a common broker-dealer network can also make advisors more trusting and transparent during the negotiation process.
"Growth through acquisition isn't just for companies with revenue in the multi-millions," Verboon said. "Advisors can also benefit from purchasing a whole or partial book of business from another advisor, adding multiple clients and assets all at once. In most cases, the advisor selling the practice introduces his or her clients to and encourages them to work with the buyer, making the new relationships stickier for the buyer than prospects obtained through 'colder' marketing methods."
The Ladenburg Thalmann practice listing site enables advisors from all three broker-dealers to list their companies - in whole or in part - for sale; announce their interest in acquiring a practice; or share their need and criteria for a succession partner. The easy-to-use site can be accessed via a link on each broker-dealer's internal website. Listings show only to advisors from their own broker-dealer for 30 days and then to advisors across all three broker-dealers. Experts at all the Ladenburg independent broker-dealer companies are available to help facilitate transactions.
"Just as advisors with aging clients want to encourage the next generation to stay with their practice, Ladenburg has thought ahead and created a way for its broker-dealers to assist aging advisors while keeping those assets at the broker-dealer," Verboon said. "When our advisors work with fellow advisors at our sister company, they have the added benefit of a common clearing platform, which can make transitioning a book of business easier. Having a joint site for these activities makes a great deal of sense for the broker-dealers, the advisors and even the advisors' clients."
About Securities America
Headquartered in La Vista, Neb., Securities America Inc. is a national top 10 independent broker-dealer (as ranked by Financial Planning magazine). For more than 25 years, Securities America's mission has been to foster the success of financial professionals so they can provide quality, objective counsel and services to their clients. Advisors benefit from the firm's industry-leading programs in practice management, advisory services and retirement income distribution, supported by state-of-the-art technology. Founded in 1993, Securities America Advisors Inc. is an SEC-Registered Investment Advisory firm that offers investment management, financial advice and financial planning through a national network of independent financial advisors. Securities America Financial Corp. is a wholly owned subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTS). Securities America received the inaugural Thought Leadership Award from the Retirement Income Industry Association in March 2011, the inaugural Bank Insurance & Securities Association (BISA) Technology Innovation Award in March 2013 and was named to the 2013 InformationWeek 500, a list of the top technology innovators in the U.S. Additional information is available at www.securitiesamerica.com.
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SOURCE: Securities America
Advisory services offered through Securities America Advisors, Inc., an SEC Registered Investment Advisory Firm. Securities offered through Securities America, Inc., member FINRA/SIPC. Securities America, Investacorp and Triad Advisors are wholly owned subsidiaries of Ladenburg Thalmann Financial Services Inc.