There are volumes that will be written about the last two years of modern history, and the effect that a global pandemic had on habits in both our personal and professional lives. Without question, if advisors were honest with themselves, they dodged a serious bullet.
The markets initially flirted with a historic meltdown, but instead rebounded to new highs. That good fortune continued a now 13 year long bull run that has advisor assets and revenue at levels that nobody could’ve predicted. In spite of the disruption of COVID-19 (anyone want to jump on another Zoom call today) advisor metrics that matter, are remarkable by any measure.
So now what? The smart narrative is this – if you could choose any time to monetize the business you’ve built and migrate to another firm, it is right now. Assets and client relationships are at peak levels; as are the deals being offered at the best firms.
Here are several reasons you should seriously consider a transition.
Yes, client assets and your revenue are at all-time highs. Most ‘full service’ firm deals are in the 300% to 350% range. Again, all-time highs. Add retirement packages to the above and that number jumps to nearly 600%.
Will markets stay in a perpetual bull market forever? No they won’t, so hit the bid. Client asset transfer is also at all-time high levels. Most advisors are seeing all of their desired assets transfer in between 30-90 days.
That last point is the singular reason why firms are paying massive upfront deal percentages. Client satisfaction is at historic highs across the board with their trusted advisors. The specter of building an entirely new relationship with an advisor that may be 20 years younger than you is a non-starter.
And you know you can feel it… this historic bull run, at some point in the near future is going to meet its match and take a hit. Find the right firm and insulate yourself with a guaranteed deal with nearly zero risk (yes, those exist right now).
As the famous song from the Clash goes, “…should I stay or should I go” asks, we think… you should go.