Where Are All The Sellers?

There are buyers who are perplexed that seller opportunities are not more abundant considering the aging advisor demographic. The question we often get from would be acquirers is, “Where are all the sellers?”

Estimates are that over half of financial advisors are looking to acquire. That’s a lot of competition. Not only is it difficult to find seller opportunities in the current market, but when you do, you are typically competing against many other buyers, especially in online auction type structures and M&A matchmaking services.

But only a minority of acquisitions are found through M&A marketplaces.

About 75%-80% of advisory M&A are scenarios where the buyer and seller knows each other. So where is your seller? Chances are you’ve already met them. Of course the challenge is knowing which is who.

If you want to increase your acquisition opportunities then a good place to start is to widen the circle of advisors you know and deepen the relationships with the appropriate people at your broker dealer that is in a position to know which and when their advisors are ready to have a conversation with a buyer like you. Yes, networking.

Many acquisition-growth minded advisors are looking towards the potential boon of retiring advisors in the coming decade with anticipation, often wondering where all the opportunities for acquisition are hiding. Analysis shows that while a third of advisors are expected to retire within the next ten years, the visible market may not reflect the abundance of selling opportunities. The reality of the situation is that most acquisition transactions in the financial advisory industry go unreported, particularly those involving average-sized practices rather than billion-dollar RIAs.

The underpinnings of the M&A market is that there is considerable activity taking place out of the public eye. Quietly and effectively, the most significant number of deals occurs behind the veil of independent broker-dealers (IBDs) and custodians. These entities play the pivotal role of matchmakers, pairing prospective buyers with appropriate sellers within their own networks. This means that in the pursuit of inorganic growth—a key strategic imperative for many—an affiliation with the right people at your IBD or custodian can become an advisor's most powerful lever.

Internal

About half of advisors plan on selling internally.

Direct

35% to 40% of advisors are selling to someone they already knew before they sold including being introduced or referred.

Marketplace

About 20-25% of advisors will sell on the M&A marketplaces.

Our IntelBoxes are anywhere from about an article to white paper in length.

If we call it a Guide then it’s more similar to ebooks of various lengths.

There are a vast array of intel navigation journeys an advisor can take based on the topic and then clicking subtopics and adjoining topics that match an advisor’s situation or interest.

Get high level quick answers or go more into depth on specific topics.

We have a relationship management platform designed for inorganic growth. It’s easier and more fun than a CRM depending on what your needs are. We call it an Inorganic Relationship Manager. For recruiting, mergers, hiring and acquiring.

Connect with marketplaces and portals to network and build your ecosystem pipeline or add your own leads from your phone right after they walk away.

Each app has its own private IRM Dashboard. That is the advisor is the only one who can view their dashboard, an excel spreadsheet detail report can be downloaded, and they can delete at anytime.

More importantly each advisorbox app is tied to the advisor’s individual app account. A broker dealer or lender or vendor or anyone else can not access any content or files from an advisor’s app. The advisor can only share access to a file (like a loan package).

AdvisorBox is a career long growth and succession tool from next-gen to exit-gen. This means an advisor can keep their app regardless if they switch firms, broker dealers, or custodians. They may have loss of access to that specific firm or broker dealer’s portal or app but each app owner maintains ownership of their own individual app, dashboard, and files.