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.
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