Joseph Femia, a managing partner with Poughkeepsie, New York-based advisory practice Seven Bridges Wealth Advisors, has seen his wealth grow to roughly $140 million. He attributes his success to the support of a strong team that allows him to focus on business development rather than wearing multiple hats.
Femia expressed his gratitude towards his team, stating, “They promised me that they would partner with me to make sure that I came in and only focused on business development. They had an ironed-out process that allowed me to work with existing team members for paperwork, pre-meeting, and post-meeting follow up.” He emphasized the importance of not taking on too many roles, as it can dilute the value proposition for advisors in the industry.
On the compensation front, Femia highlighted the significance of providing less-tenured advisors with opportunities for unit appreciation rights to shares in the firm, rather than limiting their pay to a finite salary and potential bonus. This approach allows advisors to feel more invested in the growth of Seven Bridges and provides them with a financial incentive for the firm’s success.
Be ready for an emotional, laborious journey that doesn’t end with a deal
Factors such as price tags and compensatory elements play a crucial role in external M&A deals. With valuations becoming increasingly high, sellers need to be prepared to grow faster post-close than pre-close. This can be a challenging message for advisors who have spent years building their customer bases and businesses.
According to industry experts, succession planning and M&A processes can be emotionally exhausting and feel like a full-time job on top of existing responsibilities. However, putting in the effort to find the right fit and alignment is essential to the long-term success of the firm. It involves iterating and aligning vision to ensure a successful transition.
While the journey may be arduous, the payoff is worth it in the end. Avoiding common pitfalls of succession planning and M&A can lead to a successful and seamless transition for the firm.
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