Increase Your Deal
The risk of negotiating on your own is that you leave substantial money on the table simply because the contract process is continually changing at the firms, and other Advisors can be winning points when you are hitting roadblocks. There are many ways to enhance the value of your transition package because precedent has been set by those moving ahead of you. The contracts are highly negotiable, and the process is equal parts art & science. Knowledge of what the firm can and cannot do is critical. You get what you negotiate. Finding out months later that other Advisors joining the same firm were able to negotiate more is completely unacceptable. Know the firm and their most aggressive terms. For a customized deal analysis and comparison, click here.
Under Win These Points in Your Negotiation you will find the following points discussed in more detail. In many cases, you can boost your overall deal by asking for any of the following items:
- Salary guarantee, both short and long term
- Specific earmarks for marketing your team
- Travel and entertainment budget
- Commitments for continuing education training for you and your staff
- Remodel office
- Technology: software subscription fees and hardware needs
- Home office support
- Pay out grid guarantees
- Syndicate allocation
- Finder’s fees for investment banking introductions
- Deferred comp replacement
- Support staff salaries and increases
- Support staff commitments tied to growth of business
- Matching or reducing client fees
- Waiver of all client nuisance fees
- Transition team support
- Revision of contract language to protect from termination and protect deal monies
- Side letter agreements on intangible items
- Currency options on deal monies
- Vesting schedules
- Lower performance hurdles
- Increase non-contingent monies
- Reduce or increase length of note
- Insurance policies for key personnel
- Retirement buyout agreement
Timing when to ask for certain items is also an integral part of enhancing your deal. Some of the more fundamental or larger items should be negotiated as part of your main deal. Ask for other items once you’ve shaken hands and instilled a certain level of goodwill. You’ve given something, your commitment to join, so they’ll feel more comfortable giving in to your requests for intangible items that add-up to significant value beyond the hard numbers. These are things which can, in many cases, make the difference between a mediocre deal and an exceptional deal.