What Do the Latest Cerulli Findings Mean for Curious Advisors?

The latest Cerulli Associates report paints a complex picture of the wealth management industry: advisor headcount is stagnant, top talent is scarce, and broker-dealers are competing fiercely for a shrinking pool of professionals. For advisors curious about their future, these findings offer both challenges and opportunities—but only for those willing to elevate their game.

Scarcity Drives Competitive Offers

With advisor headcount growing by a mere 0.2% over the last decade, the talent pool remains shallow. Broker-dealers, sensing this scarcity, are increasingly willing to overpay for top talent. The independent broker/dealer (IBD) and RIA channels are making significant gains in market share, further fueling the competition. For advisors, this means the potential for lucrative offers has never been higher.

The numbers tell the story:

  • The IBD channel leads in headcount market share at 16.5%, with the highest asset share at 12.7%.

  • Independent RIAs saw the largest asset growth, rising from 12% to 16% over the past decade.

Despite these gains, the wirehouse channel continues to control over a third of industry assets, even as its headcount is projected to decline further. This intense competition for talent is driving broker-dealers to sweeten the pot, particularly for experienced advisors managing substantial assets.

Good Advisors Need to Become Great

While broker-dealers are willing to pay top dollar, only advisors who distinguish themselves as exceptional—not merely competent—will command the most significant paydays. The Cerulli report reveals that 67% of assets are managed by practices with more than $500 million in AUM, with half of these practices open to acquisitions. These are the practices that broker-dealers are targeting.

So, what separates a “good” advisor from a “great” one?

  1. Client-Centric Innovation: Great advisors leverage advanced technology to streamline operations, offer personalized client experiences, and maximize efficiency.

  2. Practice Growth: They actively seek to grow their assets under management (AUM) through acquisitions, client referrals, and targeted marketing strategies.

  3. Succession Planning: Advisors who proactively develop a business succession plan—from valuing their practice to structuring deal terms—demonstrate foresight that attracts broker-dealer interest.

Positioning for the Biggest Payday

If you’re an advisor eyeing a transition, here’s how to position yourself for success:

  1. Assess Your Value: Understand how your AUM, client demographics, and business model compare to the industry’s top-performing practices. Now is the time to secure a practice valuation to truly understand where you are at and the potential for growth and acquisitions. Click here to learn more.

    • Independent advisors managing less than $500 million in AUM should consider strategies to scale up, as broker-dealers prioritize larger practices.

  2. Focus on Succession Planning: According to Cerulli, 37% of advisors plan to retire within the next decade, yet 26% lack a clear retirement plan. Developing a well-thought-out succession strategy not only secures your future but also makes your practice more attractive to buyers.

  3. Elevate Your Skillset: Clients and broker-dealers alike value advisors who stay ahead of industry trends, adopt cutting-edge technology, and provide unparalleled service. Continuous improvement is critical.

  4. Leverage Transition Consultants: Working with a consultant can help you navigate the competitive landscape, identify the best opportunities, and secure the most favorable transition package.

The Bottom Line

The Cerulli findings make one thing clear: the financial advisor landscape is changing, and those changes present both challenges and opportunities. Broker-dealers continue to overpay for top talent like its a precious metal, but only those advisors who stand out as industry leaders will reap the rewards. For good advisors, now is the time to focus on becoming great. By growing your practice, refining your skills, and preparing for the future, you can position yourself for the industry’s most competitive offers.

Curious about your next move? The market is still primed for transitions, but the window won’t stay open forever. Advisors who take action now will be the ones who thrive in the years to come. Get started right now.

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