Financial Advisor Success

Latest Episodes:

Ep 400: Sizing Up Versus Scaling Up To Build An Enduring Advisory Business with Mark Tibergien Aug 27, 2024

Show notes

Mark Tibergien is the former CEO of Pershing Advisor Solutions, a former Principal with Moss Adams Consulting, and a longtime practice management consultant and thought leader in the financial advisory industry. Over his 50-year career in financial services, Mark has witnessed the evolution of the financial advice industry and has actively defined best practices for advisory firms aiming to scale up and build enduring businesses. His extensive experience has enabled him to measure and track the key strategies that help firms not just grow in size, but also enhance their scalability and operational efficiency.

In this episode, Mark shares his insights on the crucial distinction between growing in size and truly scaling an advisory firm, emphasizing that genuine scale is achieved when revenue increases outpace expenses. He also discusses the ongoing industry consolidation and outlines the different types of firms looking to acquire RIAs—financial, tactical, and strategic buyers—highlighting how smaller firms can still thrive by focusing on local excellence or specific client demographics. Listen in to learn about the importance of proactive succession planning and defining personal measures of success, which influence both strategic decisions and the broader impact of the advisory business on the community and the industry.

For show notes and more visit: https://www.kitces.com/400

Ep 399: Maintaining Company Culture More Virtually (When Scaling Past $3B AUM With 10 Office Locations) with Kelli Kiemle Aug 20, 2024

Show notes

Kelli Kiemle is the Managing Director of Growth and Client Experience of Halbert Hargrove, an RIA based out of California that oversees $3.1 billion in assets under management for 75 households. Kelli uniquely spearheads initiatives at Halbert Hargrove to uphold the firm's four core values and foster a strong corporate culture, a critical task as the company expands to 50 employees across 10 offices in the western United States. This growth makes even their in-person offices effectively 'remote' and 'virtual' relative to the leadership at the firm's main headquarters.

Listen in as Kelli shares how she has implemented effective communication and relationship-building programs at Halbert Hargrove, including biannual in-person meetings and weekly all-hands sessions to enhance accountability and integrate new hires through a formal two-year mentorship program. She discusses initiatives that reinforce the firm's core values—like sharing 'Gladiator Stories' and 'Goofs That Give Us Guidance'—and aligns employee benefits with these values by supporting education, charitable contributions, and family care, while also managing a unique vacation policy to prevent burnout. Additionally, Kelli explains her strategic role in growing the firm's AUM past $3 billion, utilizing external PR and SEO, and integrating sales coaching to enhance client acquisition efforts without compromising the firm's fiduciary commitments.

For show notes and more visit: https://www.kitces.com/399

Ep 398: Building A $2.5B AUM Advisory Enterprise Under The Umbrella Of A National CPA Firm With Eric Wulff Aug 13, 2024

Show notes

Eric Wulff is the CEO of Marcum Wealth, an RIA based out of Cleveland that oversees $2.5 billion in assets under management for approximately 2,700 households. Eric has uniquely developed Marcum Wealth into a multi-billion-dollar firm under the umbrella of a national accounting firm, largely by fostering mutually beneficial relationships with internal CPAs to secure referrals of their accounting clients to his financial planning business. This strategy has effectively integrated and leveraged the firm's existing services to expand its client base and enhance its financial planning division.

Listen in as Eric shares his strategic approach to generating internal referrals at his firm, using a "give to get" philosophy with CPAs to ensure his advisors are top of mind for financial planning referrals, especially through exit planning services that help maintain CPA-client relationships beyond traditional business needs. He also explains how his firm standardizes financial planning across national offices through a centralized team, the effectiveness of presenting detailed financial plans to prospects before they commit, and his targeted acquisition strategy focusing on growth-minded mid-career advisors.

For show notes and more visit: https://www.kitces.com/398

Headers:

What Marcum Wealth Looks Like Today [6:35] Using A Team-Based Approach To Building Financial Plans [16:10] Linking Marcum Wealth's Planning Process To Its Asset Allocation Frameworks [28:44] Converting Prospects Into Clients Through The Plan Delivery Process [33:06] How Marcum Wealth Generates Referrals From Its Attached CPA Firm [46:10] Dividing Advisory Teams By Geography And Client Segments [57:43] Marcum Wealth's Strategic Approach To Acquisitions [1:04:21] What Surprised Eric The Most Building An Advisory Business [1:15:40] The Low Point On Eric's Journey [1:17:34] What Eric Would Tell His Younger Self [1:22:58] Eric's Advice For Younger Advisors [1:24:15] What Success Means To Eric [1:27:25]

The following contains the thoughts and opinions of Eric Wulff, CEO, of Marcum Wealth, LLC. Marcum Wealth is an investment adviser registered with the United States Securities and Exchange Commission. Registration does not imply a certain level of skill or training. The statements herein are intended as brand and general educational and informational content only, and no viewer should construe any statements as an offer of Marcum Wealth's advisory services. Viewers are encouraged to discuss the content of this broadcast with, and direct any questions to, the financial professional of their choosing.

Ep 397: Powering Growth To $1.2B Of AUM With An Intentional Focus On (Local) Acquisitions Of Retiring Advisors With Jaime Benedetti Aug 06, 2024

Show notes

Jaime Benedetti is the Managing Principal of Benedetti, Gucer, and Associates and BEAM Wealth Advisors, hybrid advisory firms based out of Georgia and Louisiana that oversee a total of $1.2-billion in assets under management for approximately 900 households. Jaime's firm has uniquely expanded to over $1 billion in AUM over the last 20 years, largely through six strategic acquisitions of mixed fee-and-commission practices from retiring local advisors, which he successfully converted into ongoing, recurring revenue financial planning clients - an approach that has not only fueled growth but also streamlined the firm's revenue model into a more predictable and sustainable framework.

Listen in as Jaime shares how he has skillfully managed the acquisition of firms with assets ranging from under $10 million to nearly $500 million, evolving from using personal funding sources to securing bank-financed loans that cover the full purchase price. He explains his strategic approach to converting acquired firms from commission-based to fee-based models, details his method for identifying potential acquisition targets through a combination of recruiters, marketplaces, and networking, and shares the importance of taking time to integrate new acquisitions thoroughly, which has not only retained clients but also attracted sellers who prioritize the welfare of their clients post-acquisition.

For show notes and more visit: https://www.kitces.com/397

Ep 396: Leveraging Business Coaches To Delve Deep Into A Divorce Specialization That Brings A Steady Flow Of Ideal-Fit Clients With Michelle Klisanich Jul 30, 2024

Show notes

Michelle Klisanich is a Wealth Advisor for Financially Wise Divorce, a hybrid advisory firm based out of Minnesota that oversees $87-million in assets under management for 91 households. Michelle stands out by effectively applying insights gained from multiple business coaches throughout her career, enabling her to precisely target and market to her desired clientele—women undergoing divorce. This focus allows her to transition these women into long-term advisory clients, with whom she builds deep, enduring relationships.

Listen in as Michelle shares how she developed a structured process to guide clients through divorce, linking them with pre-vetted professionals and providing a roadmap for life post-divorce, while ensuring they are interested in ongoing advisory relationships. She discusses leveraging her early career challenges and business coaching to specialize in divorce planning, using online networking to build influential connections and streamline her client base from 350 to 90 focused, profitable relationships. Michelle also reflects on how her personal divorce experience inspired her to help similar women, overcoming "impostor syndrome" by gaining confidence through small wins and recommending that newer advisors learn from experienced colleagues to navigate early career challenges.

For show notes and more visit: https://www.kitces.com/396

Ep 395: The Rise Of Bank Financing To Fund Independent Advisor Acquisitions And Succession Plans With Dustin Mangone Jul 23, 2024

Show notes

Dustin Mangone is the Director of Investment Advisor Services of PPL Loan, a firm based out of Texas that facilitates conventional bank loans to financial advisors. Dustin's firm uniquely enables financial advisors to access bank lending—a traditionally difficult source of debt capital in the advisory industry—for financing various transactions, including RIA and independent broker-dealer acquisitions, internal succession plans, and other growth initiatives. This approach provides vital support for advisors looking to expand or transition their businesses.

Listen in as Dustin shares how his firm partners with banks to provide loans to financial advisors purchasing advisory firms, enabling sellers to receive the purchase price upfront and increasing loan amounts as advisor repayment success grows. He discusses the key financial metrics used to determine loan amounts for mergers and acquisitions, such as the buyer's capitalization and the selling firm's recurring revenue, and explains how these loans support both full purchases and partial buy-ins during internal firm successions. Dustin also touches on current trends in advisory firm valuations, the differences between conventional bank loans and Small Business Administration loans, and the continued robust financing opportunities for advisory firm transactions, underscoring the inherent stability of these businesses due to their long-term client relationships.

For show notes and more visit: https://www.kitces.com/395

Ep 394: Launching An Administrative Family Office Practice To Deliver Your Best Support To (HNW) Clients with Christi Van Rite Jul 16, 2024

Show notes

Christi Van Rite is the Founder of White River Consultants, a firm that provides administrative family office services to 17 ultra-high-net-worth households. Christi, whose firm is on track to generate nearly $1.5M in revenue this year, offers her insights into the complexities of managing extensive personal finances. You'll learn about the four primary pillars of Christi's services—personal bookkeeping, payroll for household employees, property management, and information and document management—and how each of these plays a role in maintaining financial order and security.

Join us as we delve into Christi's journey from a traditional financial advisor to a leader in administrative family office services. You'll hear about her strategies for managing the financial needs of complex client households, the importance of using a client-owned tech stack for flexibility, and the role of robust referral pipelines in growing her business. Christi also shares her approach to curating, onboarding, and training specialized team members, managing risks associated with serving high-dollar families, and why she believes this niche is a fulfilling career path for financial advisors.

For show notes and more visit: https://www.kitces.com/394

Ep 393: Taking The Risk Of A Multi-Million-Dollar Succession Loan To Make The Business What You Want It To Be with Alex Lewis Jul 09, 2024

Show notes

Alex Lewis is the owner of Blackbridge Financial, a hybrid advisory firm based out of South Carolina that oversees approximately $330 million in assets under management for 415 households. At just 29 years old, Alex boldly acquired his firm through a multi-million-dollar loan, stepping in as the successor to the founder. Over the past four years, he has transformed the business by overhauling the staff, technology, and service structure—nearly doubling the firm's AUM in the process.

Listen in as Alex shares how he gained trust and smoothly transitioned into ownership by increasing his client-facing roles and negotiating a seller-financed purchase, setting the stage for financial challenges that included managing a hefty initial loan payment. You'll learn how his firm categorizes clients into five service tiers, tailors experiences with personal touches like preferred beverages, and expands the team to uphold a high-touch service model, ensuring each advisor manages no more than 150 clients. We also discuss Alex's career shift from public accounting to financial planning, his strategic fee adjustments that reinforced client trust, and his use of influential business strategies from books to continuously refine and grow the firm he envisioned.

For show notes and more visit: https://www.kitces.com/393

Ep 392: Crafting Your Specialization When There Is No Standard Playbook To Learn It with Kristopher Heck Jul 02, 2024

Show notes

Kristopher Heck is a Founding Partner of Tanager Wealth Management, an RIA based out of London that oversees approximately $1.1 billion in assets under management for 630 households. Kristopher's firm stands out by scaling to over a billion dollars in AUM, specializing in serving clients with financial and personal ties to both the United States and the United Kingdom, a niche lacking a standard playbook. This unique focus on complex transatlantic tax, estate, and planning issues has allowed them to develop a highly differentiated expertise in the marketplace over the past decade.

Listen in as Kristopher shares his journey of founding Tanager Wealth, drawing on his personal experiences as a US expatriate to specialize in cross-border US-UK financial planning. He explains how his firm fosters a learning environment through internal blogs, videos, and lunch-and-learns, as well as how establishing early partnerships with other expatriate-focused professionals has cultivated a robust referral network. We also discuss the structure of separate advisory and planning teams that enhance career development and knowledge sharing within the firm, highlighting the importance of combining the right people and technology to effectively scale and succeed in the financial advisory landscape.

For show notes and more visit: https://www.kitces.com/392

Ep 391: Improving Efficiency (In A Solo Practice) By Eliminating What Clients Don't Really Care About Anyway with Christopher Jones Jun 25, 2024

Show notes

Christopher Jones is the Founder of Sparrow Wealth Management, an RIA based out of Orlando that oversees approximately $110 million in assets under management for 69 households. Chris has distinguished himself by building a highly efficient solo practice that operates under 25 hours per week, enabling him to spend more time with his family. He achieved this by concentrating solely on the most crucial financial planning tasks for his clients—and outsourcing or eliminating all other activities.

Listen in as Chris shares how he streamlines his financial planning process by collaboratively working through plans during annual meetings, focusing on clients' goals instead of detailed cash flow analyses, and managing cash requests through a single annual distribution. He explains his efficiency improvements through a curated tech stack of specialized AdvisorTech products and the strategic decision to manually update client balances, a move away from excessive customization that has significantly grown his AUM. We also discuss how transitioning to a remote practice has allowed Chris to live closer to family, how he generates referrals from well-connected clients, and his approach to managing perfectionism by outsourcing tasks to alleviate time constraints and reduce anxiety.

For show notes and more visit: https://www.kitces.com/391

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