Let’s say you were just approached by a lead advisor with a team who’s seeking counsel for the team’s next big move — they’re excited to discuss recruiting options with you.
As you dig into their story, you realize that the team might be a difficult one to transition, due to some potential obstacles. Such issues can take many shapes and forms, including:
- pending customer complaints or past disclosures that will be hard to clear through compliance;
- advisor or team involvement in time-consuming firm, state, or insurance regulatory investigations that could result in sanctions;
- promissory note obligations that are still outstanding and have the strong potential to turn into litigation;
- partnership conflicts involving non-compete or non-solicitation issues; or
- impending terminations or resignations, where the current firm will do everything possible to make the reps’ lives difficult.
While all of these issues can be potential showstoppers for a recruiter, it’s not always the negative situations that make a recruiting deal difficult.
- Maybe the team is large, complex, and successful, and it requires complicated tax planning, general consulting, or contracts drawn up or reviewed.
- The team might require consulting regarding how to navigate the Broker Protocol or better understand the intricacies of how to best move a book out of business.
- They could be looking to set up an RIA and need registration or general securities law and ongoing compliance consulting for the new entity.
- It’s not uncommon for an advisor or team to need a third-party business valuation and financing or a succession plan.
These are just some of the common hurdles that we’ve seen with advisor and team transitions.
AdvisorLaw’s expert team has consulted in FA transitions involving a combined total of $1 billion in annual production. We’re a one-stop shop for recruiters who need a little extra help to get the deal done. We truly value our partnerships with recruiters and will do everything we can to ensure placement of the most possible candidates.
Learn more about our Recruiting and Practice Migration services.
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