Mergers and Acquisitions: The Right Deal or The Right Partnership?

By Christopher Mercado, MBA, CFP®, CIMA®, AIFA®, Managing Partner and Chief Investment Strategist

In the world of M&A, there are a million things to take into consideration, but one of the most important aspect that advisors often forget is that you not only need to find the right deal but find the right partnership.

It seems intuitive, but in a contract-driven engagement, all parties involved can hyper-focus on the numbers and leave out the personalities behind those numbers. I’ll hear advisors ask, “Does merging with this practice help my bottom line?” or, “What’s the breakeven analysis on the acquisition of this book?” What they need to do is take a step back before signing on that dotted line and ask: “Does the values of this practice match my own?” and “How will these clients fit with my investment strategy?”

In fact, I tell my team that you should consider the process as carefully as you would a marriage—this is a decision that can affect the rest of your professional life, so treat each step with care and flexibility. Even for advisors looking to retire, the advice is the same. Let’s face it, it took you a lifetime to develop your practice—the last thing you want to do is let it go to another firm that won’t take decent care of your clients. At The Network, we partner with you to take a holistic look at your practice and the firm, business, or advisor you’re thinking of engaging with. Contact our team today for help.