Danielle White, Founder and CEO of Myriad Advisor Solutions, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the role a consultant can play in the formation, growth, and exit of an advisor’s business.
Myriad Advisor Solutions assist advisors in launching or scaling their firm as well as in building succession plans. Myriad becomes an extension of the advisor’s team by providing support for IT, HR, marketing, and compliance operations. The firm can advise on the new firm’s tech stack, perhaps earning discounts from the enterprise software providers.
White states that many newer advisors are very talented financial advisors but don’t have experience launching or running a business. Myriad can confidentially assist advisors in creating new legal entities. When starting their own business, advisors need a vision for their firm, including the name of the firm, the types of clients they will focus on serving, and the structure of their team.
There are a variety of ways transitions or successions can take place. These include internal succession, mergers and acquisitions, or an external transition outside of their existing firm. A key to succession planning is to make the firm more valuable by creating efficiencies and making the business well run without the presence of the owner. White recommends a long-term succession plan, with at least five years to plan before the expected transition date. Advisors who wish to transition next year are likely starting the process too late to be able to significantly add to their firm’s valuation. Myriad also offers valuation and benchmarking services.
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