How the Buyer and Seller Relationship Has Evolved

How the Buyer and Seller Relationship Has Evolved

It’s hard to believe that it’s been 5 years since we launched RIA Match.  Our last blog focused on the importance of ‘Being Curious’ – a key trait we found among our most active and successful subscribers. In this blog, we focus on our own curiosity themes that we’ve seen between the buyer and seller relationship over the past 5 years and some key takeaways:    

Takeaway #1: Inorganic Growth is a Challenge. 

Advisors by nature are alpha dogs and regardless of age, AUM or value proposition, most advisors think of themselves and present themselves as buyers. Growth mode can be discouraging. Do not be deterred by what an advisor claims are his stated goals. The advisor’s age and current succession plan are more indicative of his future needs. A buyer will become a seller if they see a reasonable path forward for themselves and their clients. Advice to buyers; be reasonable, know and communicate your value proposition. 

Takeaway #2: Those Who Envision a Broader Goal are More Successful.

Instead of engaging in dialogue focused on your own acquisition vision or sale price, reset your approach. As simple as it sounds, when you first engage with a potential partner, determine if you like each other, if you can work together and if you value the same things. Yes, it is important to share a similar investment philosophy, client experience, and valuation assumptions, but if you can’t develop a relationship based on trust and a healthy working exchange, it won’t go well, regardless of how well aligned the rest of the deal terms. 

Takeaway #3: Your Definition of Success Defines its Probability.

If your vision is fixed and it’s your way or the highway, your negotiations will be ineffective. If you are a seller and you are rigid on a valuation or business model with no room for discussion, then you may be yielding to maturity without a liquidity event and more importantly, your clients will be left in a lurch when you can no longer care for them. A buyer who is determined to win every negotiating point decreases their chances of closing a deal they worked hard to develop.  

Related: Exploring the RIA Phenomenon: The Buyer's Bias

Takeaway #4: The Art of Compromise.

Both sides must have a winning outcome. If the seller perceives they are getting the bare minimum value and is concerned for their client’s after they’re gone, they will consider bailing, even after months of discussions and deal making. If the buyer feels as though they have met every concession and the seller is still sore, they may likely walk away as it is only the beginning of the relationship for them.  

Takeaway #5: Synergy is Required to Cross the Finish Line.

The deal terms matter but if your clients don’t see the value and make the switch, the seller’s earn out is compromised and the buyer retains less of the AUM pie. With a joint vision and mutual respect, the buyer and the seller must communicate the increased value of the joint firms to all stakeholders; that means both your clients and staff. 

Bonus Takeaway: Know Thyself

RIA Match subscribers that take the time necessary for true self-discovery, looking hard at where they may have gaps, and then determine their ideal business vision, are the most effective on the platform.  Need help in this process? Contact us for our Concierge Consulting Services and be sure to check out the additional resources in our website’s Knowledge and Insight Digest, Store, and Support sections. 

Mary Ann Buchanan
Advisors in Transition
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We match financial advisors, future financial advisors and advisory firms. RIA Match provides insightful resources, facilitates your search and puts the power in your hands. S ... Click for full bio

At Tokyo's International Robotics Exhibition, Innovation Was the Star

At Tokyo's International Robotics Exhibition, Innovation Was the Star

Writtren by: Jeremie Capron, Director of Research

Last week, the ROBO Global team traveled to Toyko for a whirlwind week of meetings, research, and exploration at the bi-annual International Robotics Exhibition. One of the biggest industry events in the world, the conference hosted more than 130,000 visitors and featured more than 600 exhibitors and 2,775 booths. To say that the 50% growth of the show floor since just two years ago is impressive would be an understatement. But what was even more notable than the size of the event was the sheer magnitude of innovation that was present at every turn. Here are just a few of the highlights:

Intelligent robots took center stage.

Of course, “intelligence” is relative, but the leading industry players, including Fanuc, ABB, Yaskawa, and Kuka all demonstrated robots that embed significantly more intelligence than two years ago. One of the most impressive examples: Kawasaki Robotics demonstrated a new robot that can learn how to manage the intricate process of aligning component pins on a car seat to install it on a car frame. We watched as a human instructor used a joystick to help the robot maneuver and “feel” the holes so it could successfully slide the pins into place. After a few dozen guided attempts, the robot was able to learn the process, and the need for human assistance was eliminated. Even more amazing was that this kind of learned skill can be shared instantly with other robots, enabling exponential learning across the factory floor. 

Mobility was the focus of dozens of mobile robot platforms, each exhibiting various degrees of autonomy.

Omron highlighted its autonomous indoor vehicles that use advanced technology recently acquired from Adept. KUKA’s iiwa mobile robot features a sensory arm that detects contact immediately and reduce its level of force and speed instantly—and can even navigate autonomously and act in swarms. And Nabtesco and Harmonic Drive demonstrated highly engineered reduction gears that take rotational movement and robotic dexterity to a whole new level of performance.

Machine vision and augmented/virtual reality were in the spotlight.

Keyence premiered new 3D vision systems that are broadening the scope of robotic applications by refining the precision at which robots can pick, sort, and handle even the most delicate and fragile items. DENSO, which is better known for its automotive parts than its robots, demonstrated a multi-modal AI robot that can be controlled by humans with VR goggles and sensors. DENSO has made significant headway in robotics in recent years, especially in the electronics assembly market, with a series of small form factor robots.

Collaboration was the talk of the show.

A new generation of collaborative robots was on display, demonstrating how people and robots can work together safely. ABB previewed its newest collaborative robots—single-arm models that combine cutting-edge capabilities with a smaller footprint and higher payloads than its popular dual-arm industrial robot, YuMi. Of the multiple corporate collaborations that were announced, ABB and Kawasaki Robotics made headlines with the news of their partnership to develop collaborative robots and create common industry standards for robotics safety, programming, and communication.

These highlights were just the tip of the iceberg. Toyota’s T-HRC, a humanoid robot, performed “dabs” for an enthusiastic audience. Kuka AG’s LBR iiwa (a “Leichtbaurobotor” intelligent industrial work assistant) poured bottles of beer for attendees. There was a power-assisted suit from JTEKT that gave participants super-human strength, and “Miim,” a life-size humanoid robot that features 30 body motors and 8 facial expression motors, as well as speech recognition software to recognize speech patterns and even detect ambient sound. There was even a soft, robotic toy dog, “Hana-Chan,” that smells and reacts and behaves much like, you guessed it, a dog. From industrial to healthcare to entertainment—and everything in between—there was a robot to thrill and amaze anyone and everyone.

What is particularly refreshing about being in Japan (where I lived and worked for nearly seven years) is the pure excitement about robotics, automation, and artificial intelligence (RAAI). This is a country that is depending on this technological revolution to help solve many of its most critical concerns, including an aging population, decreasing workforce, and a need to produce enough goods and food to sustain its society far into the future. The Japanese people embrace RAAI technologies with vigor, and that energy is infectious. (It’s no wonder that 30% of the companies in the ROBO Global Robotics & Automation Index are headquartered in Japan and have continued to deliver some of the most stunning results. Learn more in the ROBO Global Q3 2017 Review.) 

Related: China's Push Toward Excellence Delivers a Global Robotics Investment Opportunity 

While we were at the show, we were fortunate to have formal and informal meetings with the CEOs and CFOs of more than a dozen companies of interest, each of which is leading a specific innovation that ROBO believes will serve as a core industry capability moving forward. I’ve known some of these leaders for years, and their companies already boast sizable market caps based on their established success. Others we spoke to are newer players that are in the early stages of growth, but that hold great promise for the future. Every discussion we had gave us greater insight into not only where these companies and the industry as a whole are today, but more importantly, what the future holds for them—and for us.

At ROBO Global, our goal is to ensure the ROBO Global Robotics & Automation Index is consistently aligned with the fast-changing robotics industry and provides diversified exposure to technology leaders across the entire supply chain—innovators large and small—who are positioned to fuel the tremendous growth to come. What was evident from every discussion, every demonstration, and everything we saw in Toyko last week was that robotics and AI is still in its infancy. The future of robotics will surely surprise us all, and our job at ROBO Global is to help investors capture the growth and returns opportunity presented by the robotics and AI revolution—both today and far into the future.EndFragment    

ROBO Global
Robotics and AI
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ROBO Global LLC is the creator of the ROBO Global® Robotics and Automation Index series, which provides comprehensive, transparent and diversified benchmarks representing the ... Click for full bio