How To Grow With An M&A Strategy
How to Grow Bionically vs. Organically
October 21, 2013
Alliance for Registered Investment Advisors
Achieving a healthy growth rate means RIAs need to add top
advisory talent to develop business and oversee key relationships.
RIAs can acquire such advisors organically (hiring or developing
them) or bionically (partnering with key talent via mergers and
acquisitions). While both strategies have their pluses and minuses, a
bionic (inorganic) strategy has tremendous upside potential and can be
extremely effective in driving growth. However, choosing the wrong
merger partner or acquisition target can deal your firm a crushing blow.
Are you maintaining a 15% annual growth rate? Doing so is critical.
Absent healthy growth, it is impossible to provide good value to
your clients, your team and the communities you serve. Growing
requires developing top advisory talent. In our experience doing this
organically is not easy. Thus, it can be more efficient to go “bionic” and
acquire or merge with another RIA to bring top talent to your firm.
- Growing your own advisory talent is a good strategy but it
takes a lot of time.
- Recruiting top quality advisors and expanding into new
markets is difficult, expensive, risky and time consuming.
- An efficient way to grow is by acquiring top talent via merger
with another RIA.
- Close alignment of culture, values, philosophy and a mutual
commitment to growth helped us succeed in our recent
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