BridgeMark Strategies, the comprehensive independent consultancy for independent financial advisors and financial advisory firms seeking strategic planning, execution and advice in transitions and M&A, today released findings from its review of the firm’s 2021 advisor transition. The internal data suggest 82% of advisors choose to affiliate with smaller firms or smaller groups within larger firms.
“After studying last year’s advisor transitions, we saw an overwhelmingly consistent trend of advisors choosing to affiliate with a smaller firm and has like-minded professionals,” said Jeff Nash, Co-Founder and CEO of BridgeMark Strategies. “Even while the largest firms in the industry may attract the most advisors, when advisors select those firms, they choose to align with a smaller group within them such as an OSJ or hybrid enterprise.”
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This trend was identified through a review of BridgeMark’s proprietary 2021 Advisor Movement data. The firm worked with hundreds of advisors, and while there were multiple scenarios of advisors selecting some of the same firms, in aggregate, they affiliated with as many as 30 different firms, across nine unique business models ranging from large broker-dealers (BDs) and custodians to boutique independent BDs and Registered Investment Advisory (RIA) firms.
Mr. Nash continued, “The collective camaraderie, shared ideas and added support seem to be driving these affiliations, and while advisors appreciate the support of the larger firm, they tend to be concerned about being lost in the crowd. The value of aligning with a group that can offer some scale and help them assimilate more quickly into the new firm seems to provide significant upside value for advisors.”
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