Monetization vs. Independence: What’s the Best Path? A Special Industry Update

With Jason Diamond and Mindy Diamond

Overview:

Many advisors are drawn to independence for the control and equity-building potential it offers, yet find themselves wondering if monetization in the short term might be the better way to go. Jason Diamond and Mindy Diamond provide insights and guidelines to help advisors navigate these choices with strategies to assess factors like growth, profitability, succession planning, and short- vs. long-term goals.

About this episode:

The prospect of becoming an independent business owner is attractive to many advisors. The freedom and control that come with ownership, along with the potential of building equity, would seem like a compelling choice over transitioning to another employee model.

Yet, when it comes to deciding between monetizing through a recruiting deal now or making the leap to independence, many advisors find themselves caught in the middle—that is, between the proverbial bird in hand now and the potential down the road via increased growth, profitability, and even a sale of some or all the business.

Especially if you’ve never monetized, would it make sense to do so first before breaking away? Or should you just jump into independence headfirst with your sights set on the long term?

There are no simple, one-size-fits-all answers—but there are some strategies to help you through the decision-making process.

Jason Diamond does a deep dive into the topic with Mindy Diamond and shares some guidance to follow when faced with this important decision, including:

• The growth and legitimacy of the independent space—and the impact on an advisor’s decision-making process.
• Monetization options—and how each is dependent on an advisor’s goals.
• Firms with multi-channel affiliations—and why they have become a “go-to” option for many advisors.
• “Move once, monetize twice”—and what types of advisors this option may appeal to.
• Succession planning—and what advisors need to know when weighing a retire-in-place program over other options.
• The short-term vs. the long-term—and why having clarity on goals is one of the most critical aspects of the decision-making process.??
• And the questions advisors can ask themselves to determine the right next step.

This is a full-on education of the choices that advisors have, as well as the determining factors for each. So, whether you’re a wirehouse advisor considering the best path forward or just looking to get acquainted with the ever-changing industry landscape, this episode is for you.

Related Resources

Move Once, Monetize Twice - Weighing all of your options may result in doubling the returns; in essence, moving once yet monetizing twice.

Wealth Management Landscape at A Glance: Focus on Independence - In a greatly evolved industry landscape, the independent space has expanded to offer a variety of models with varying levels of freedom and flexibility. Which one might be right for you? Our newly updated “Landscape at a Glance” focuses on independence, providing the key features of each model.

?What Advisors Should Focus on to Maximize the Value of Their Practice: An Investment Banker’s Guidance - Dan Seivert of ECHELON Partners offers perspective to help advisors better understand their business’s value drivers and how to maximize each, even if you aren’t interested in going independent or selling your business.

You can also listen to the full episode on our website , as well as on Apple Podcasts , Stitcher or Spotify