Merging your RIA Firm: How Well Do You Know Your Prospective Partners? | WealthManagement by Phillip Flakes

Merging your financial advisory practice with another is an effective way to scale your business, but it's not hard for the merger to get derailed if you don't do your due diligence upfront. One of the most important steps in due diligence is making sure you get to know your new partners.

That may seem like common sense. After all, you certainly need to know your partners if you're going to go into business with them. However, many advisors make the mistake of only getting to know their new partner on a cursory, professional level. That's likely a mistake.

Try to make an effort to really get to know them, both on a professional and personal level. Take them out to play golf. Get your families together for dinner or a sports game. Some advisors will even hire a coach to ease the transition. Whatever you need to do, make sure it gets done so that you're not surprised by who you end up in business with.


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