Featured in May 2010′s issue of Research Magazine
Registration to DealMentors.com offers all the information Financial Advisors need to move firms.
The site offers you:
- Which firms are paying what – continually updated. To view a sample deal click here.
- Strategies to increase the overall value of your deal.
- When to tell your clients and team members.
- Answers to your specific questions about firms, deals and logistics.
Thousands of Advisors move each year and leave money on the table. DealMentors.com can help you get what you deserve.
Who’s Paying What
March 2013
A look at major transition packages
offered to top FAs
Some firms offer a baseline deal applicable to highly sought after, first quintile Advisors, defined by a combination of length of service, location, assets and percentage of revenue derived from those assets.
Click on the name of a firm below to see an overview and a detailed deal currently offered to Advisors.
Bottom of Your Book
Most Advisors saw a 30% decline in their revenues in 2009, and trading off that number may appear dumb. But is it? Deals these days are 50% backend oriented, and the accelerated nature of these payments is insane. Currently business is improving, and your firm will only pay grid for it, while acquiring firms will pay grid plus 100% of its value.
It’s true that the upfront money you would command is less, but taking an average T-12 over 24 months, the difference is negligible. What’s more, your mentality right now is that your business should be higher, and it follows that your revenue will get back to where it was. That leaves you with once in a business life opportunity to clean the clock of a major Wall Street Firm who thought, mistakenly, that they were acquiring you for a discount.
Let’s take a look at a $2M Advisor, whose business fell 30% and decides to move now. Several firms would have paid him $2.8M upfront, but now, the bid is $2M. But the backend payments give 20% rewards for reaching a mere $1.4M in production, and there can be a total of 5 payments as the business climbs back to par, or $2M, creating a 300% deal, or 200% of your prior.
If you stay at your firm and hope for the numbers you used to do, you will only earn grid and lose the accelerated dollars you are now highly motivated to regain.