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My IDB Was Just Sold; Use This Opportunity to Get Your Power Back


My IDB Was Just Sold; Use This Opportunity to Get Your Power Back

The 4 things you should be doing to regain control of your business life

With LPL’s announcement of their purchase of 4 NPH firms, there’s no doubt IBD advisors everywhere are feeling a wave of “disruptive uncertainty” running through their offices. Most certainly for NPH folks, this represents some incredibly unnerving times: To wake up one morning and find that you’re now a part of a much larger “family” – that is, going from somewhere in the vicinity of 3,500 to 17,000 advisors by LPL’s account – that feeling of uncertainty is at an all time high.

News of big purchases and M&A deals like this are nothing new. And with a landscape that’s changing as quickly as we are seeing these days, this is sure to not be the last.

Related: How the Reduction of Recruiting Impacts Wirehouse Advisors

As an independent rep whose BD was just sold, whether you’ve been content or not with your firm, there’s no doubt that the announcement is unsettling. Someone just threw a grenade in the room and changed all that you built your life’s work upon. No one asked you if you wanted things to change; it just happened. It’s as though you’ve lost all power over your business life.

Of course, there will be changes to processes and culture—that’s just what happens when there is new ownership, despite promises to the contrary. So it’s absolutely natural for one’s initial response to be a mix of excitement, deep concern, and in some cases, outright panic.

What we tell advisors who are confronted with a situation like this is the following: Stop and take a deep breath—and, most importantly, use this as an “opportunity” to get your power back.

Consider these 4 items your “next steps”:

  1. Define your goals and agenda. Without knowing what it is you are looking for, it’s impossible to weigh your options. Now is the time is the time to dig deep and determine what it is that you really feel would be best for your clients and your business life.
  2. Start the process of fully vetting the acquiring firm’s offerings, platform and retention package. Many advisors find that the grass is actually greener with the new firm and this purchase may be exactly what your business needs to take things to the next level.
  3. Get educated on the landscape. Things have changed a lot, even in just the past year. There are a lot of high quality broker dealers offering significant transition dollars, and, in many cases, superior client service, technology and support.
  4. Connect with trusted support. Contact an objective and experienced recruiter to identify the right opportunities that would help you achieve your goals. It is important to streamline what can be an arduous process, and you remain focused on your clients.

Any time a firm is sold, advisors owe it to themselves – and, as fiduciaries, their clients – to make sure that where they will land is, in fact, the very best choice. After your own due diligence, you may find that the new BD is actually the right one for you. Or you may find that better opportunities actually exist elsewhere.

Ultimately, it’s your responsibility to be proactive in the role you play in your own future. So start now on your way to regaining the power you have in order to forge the path to your best business life.

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