Avoid These 3 Big Transitioning Missteps

  • Understanding & Looking Beyond the Offer
  • Keeping It Under Wraps – Mums the Word
  • The Critical Role of the Broker Protocol

Making a move to a new firm can be the best way to grow your business and keep your clients happy. It is an exciting time as you pursue finding a new and better home for your business. Broker-dealers are eager to woo you, and the variety of hybrid-offers and deals to attract you are cycling at all-time high. But remember, making your big move is not without risk, and successfully identifying, soliciting and understanding the best offers is difficult. 

A big move can often feel like an obstacle course with multiple hurdles to overcome and legal risks to try and avoid throughout the process. However, every year, advisors make the move — some more successfully than others. When considering transitioning to a new firm, it’s important to take a step back before you move ahead and develop a plan.

While it can be difficult to maneuver the risks associated with making a move to a new broker-dealer, there are common mistakes you need to avoid in order to help the transition run smoothly. Working with a Transition Specialist is the most effective way to identify risks, opportunities and gain the resolve needs to successfully make your move. Some advisors will undoubtedly go at it alone and repeat some of the mistakes or fall victim to some of the pitfalls that the obstacle course possess, so let’s review some of the most common transitions mistakes to avoid.

The first mistake to avoid is simply jumping at the firm that offers you the most money. Don’t let the appealing offer blind you from finding out what’s going on beneath the surface. Do you fully understand the offer, its terms and language? With so many types of offers and hybrid working models each layered with their own unique language and terms, it can be more than challenging for advisors — it can be confusing. That’s just one of the reasons why getting guidance can be so helpful.


The second common mistake centers around not really understanding who you are about to hitch your wagon to — what’s their culture, track-record and outlook? It’s critical to do proper due-diligence on a potential broker-dealer and get a better sense of what working at the firm is like. While due diligence can be time consuming, it is a critical step in making sure you end up in a place that’s right for you and your business. 

Another big mistake to avoid is letting word get out about your impending move. The fewer people that are in the know, the better. Keep your plan to yourself, period. However, having the benefit of a sounding board for your plan that will keep your move confidential, as when working with a Transition Specialist, can be quite advantageous. The last thing an advisor wants is their current firm learning about their move before it’s time. Bottom line, having people find out about your move too soon can leave you exposed to potential lawsuits.  

The Broker Protocol plays a big role in transitions. Advisors need to know what they can and cannot take with them when leaving one firm to another. Whether your move is within the Broker Protocol or not, advisors should be sure to check their employment agreements to see what information they’re allowed to take and what is allowed when it comes to contacting their clients.  

While on the surface, transitioning may seem tricky, 3xEquity is here to make it easy. In just a few days, we’ll get you multiple offers from leading national and regional broker-dealers — all while you stay anonymous. From there, we’ll be by your side every step of the way throughout the transition process serving as your specialist and helping you clearly understand the offers and how to negotiate for the best deal. Visit 3xEquity.com to learn more and start finding a new home for your business.

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