DealQuest’s BEST OF Leading Women in the RIA Industry
This week we bring to you a BEST OF episode. You’ll get to hear from some of the leading women in the RIA industry! Lisa Rapuano, Mindy Diamond, and Mary Ann Buchanon shared a wealth of knowledge. Listen in, and prepare to take notes!
Meet Lisa Rapuano
When Lisa Rapuano was twenty-five years old, she managed to talk her way into an investment management position. A startup in Chapel Hill, NC hired her, and her interest in investments grew. The experience she gained at FSP unearthed a new passion for investment research, which quickly became her focus and paved the way for her future as a business leader.
A Market-Cooperative Business Model
Today, Lisa serves as the CFO of Facet Wealth. This is an RIA that focuses on people with less than a million dollars in investable assets. Their niche encompasses thirty-three million American households that have between $100k-$1M in investable financial assets.
She describes Facet Wealth’s business model as market-cooperative. That’s because they are driven by highly efficient, back-end technology that enables their financial advisors to provide a holistic customer experience to lower net worth clients. As a result, peripheral partnerships are developed with other RIAs that focus on more complex investment strategies.
Deals are a driving force behind Facet Wealth’s success. There are two primary types that they use to generate growth. The first is a referral partnership, where Facet pays for referrals if the prospective RIA partner signs a solicitation agreement with them. This offers Facet’s RIA partners a way to continually serve the segmented clients, while also freeing up capacity and resources to focus on their niche.
The second way is a revenue replacement opportunity. This is also a sequential deal where Facet signs an asset purchase agreement with an RIA to acquire certain of their client relationship. In these deals, Facet will agree to terms for how long the RIA’s revenue will be replaced after the client transitions to Facet. This provides a great home for their smaller clients as the RIA seller focuses on their larger clients.
Meet Mindy Diamond
Mindy Diamond is the CEO and founder of Diamond Consultants. She specializes in recruiting and placing financial advisors. Through Mindy’s work in the wealth management field, she has helped facilitate numerous deals between buyers and sellers. She is a true expert at identifying potential deals for her clients. In addition, she is excellent at identifying weak points when the deal partners aren’t a good match.
The Best Deals Require the Best Partners
In our interview, Mindy and I talked about what differentiates a good deal from a bad one. Mindy shares her strategies for identifying when a buyer is ready to buy. She also shares her thoughts on the ever-evolving financial advisor field. A facilitator like Mindy can simplify the sometimes confusing process of finding and closing a deal. She’s a powerful asset to have in your corner!
One of the major changes Mindy has identified in recent years is the industry’s move toward independence. Although this creates more possibilities and avenues for deal-making, it has also served to complicate the process. There are many more things to consider when structuring a deal now than there were ten years ago. Finding the right partner is critical. It’s a growing challenge with the ever-wider buffet of options available.
It is also important to look at the bigger picture. A deal can have immediate benefits, but sour over time. By looking past the instant gratification, you can get a better sense of how your deal will affect you in the long term. That long-term approach is an important aspect of the evaluation process; an experienced consultant like Mindy can help you with that process.
Meet Mary Ann Buchanan
Mary Ann is the CEO and co-founder of RIA Match. This is a service that helps pair RIA firm and practice buyers and sellers. Her company has more than five thousand clients all over the nation. Mary Ann is experienced in connecting her clients with the right deal partners. She truly understands why the numbers don’t always tell the full story. Mary Ann helps her client firms look past the financial appeal of a deal in order to see the many other important key factors that need to be considered.
During our interview, I spoke with Mary Ann about the role culture plays in making a good match between deal partners. We discuss some of the deals Mary Ann has made in her own business that have helped RIA Match accelerate its growth. She also shares some surprising statistics about the RIA industry. We were able to discuss the work her company does for its clients in areas like succession planning, mergers and acquisitions. She is truly an expert in the art and science of matching the right deal partners.
Mary Ann also gave a fantastic checklist of considerations and data points that RIA Match examines. This is a phenomenal list to keep in mind when you’re looking for your own deals. Consider things like geographic location, number of clients, what technology is being used, and what sort of growth trajectory you are looking for. Each of these come into play as things potential deal partner may want to know about your organization. That means these are things that you should consider to help evaluate if a deal is the right one for you.
Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
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