The Benefits and Risks of Independence: Expert Advice from Ryan Marcus

In this episode of On the Circuit, Three Crowns CEO Johnny Sandquist sits down with Ryan Marcus of MarketCounsel and Hamburger Law to discuss the pros and cons of advisors going independent in a post-covid landscape. 

One thing Ryan Marcus wants you to know: Client relationships are more important now than ever – and both advisors and clients are taking note. Often, that means that clients have loyalty to a specific advisor’s advice and consistency, rather than a firm’s brand. 

That also means that more advisors than ever are considering going independent. Marcus notes that some of the perks of independence could include increased profits, better client experiences and evolving technology. 

“I think advisors owe it to themselves regularly to spot check that and say, ‘Am I at the absolute best place that will allow me to deliver objective advice for my clients?’” Marcus says. “And I think advisors are recognizing that the RIA space offers really the best of both worlds. “

Of course, independent advisory businesses do come with inherent risks. One of the most common pitfalls Marcus has seen in his work at MarketCounsel and Hamburger Law is advisors basing their own journey on that of their peers. 

“They’re basing their anticipatory transition based on what a friend’s done in prior years, which is dangerous because every transition is different,” he explains.

Marcus goes on to discuss how private equity and venture capital is increasingly common in the breakaway and RIA space. He advises that before taking any outside funding, advisors should feel confident in who they choose as a partner. 

Marcus hits on all these points and more in today’s episode. Click “play” above to hear more about his thoughts on the future of financial advice, and be sure to check out our other On the Circuit episodes!

Key Takeaways

1. Get a closer look at the realities of considering independence as a financial advisor in a post-covid environment.
2. Listen in as Ryan Marcus analyzes the wave of M&As in the industry, and how private capital is playing its part.
3. Explore the trends in mergers, acquisitions and the significance of private capital in the financial industry.

Key Timestamps and Topics

• 00:01:16 – Ryan Marcus highlights the growing importance of client relationships and the shift away from relying on firm brands. He also mentions that even previously skeptical advisors are now considering independence due to the maturing independent landscape and the availability of technology.
• 00:06:01 – The conversation focuses on the advancement of fintech companies in supporting the RAA model. 
• 00:09:28 – The guest warns advisors about basing their transition strategy on what others have done in the past. 
• 00:13:37 – Sandquist and Marcus discuss the increase in M&A transactions, with a significant percentage completed by private capital-backed acquirers. 
• 00:17:19 – Marcus explains that a high multiple does not necessarily mean a high payout for advisors, as there are many factors that can affect the actual amount received. 
• 00:18:12 – With the rise in interest rates, buyers, including private equity firms, have become more selective. 
• 00:19:11 – Marcus emphasizes the significance of optimizing deals from both a tax perspective and the overall structure of the deal. 
• 00:20:53 – Marcus highlights the abundance of options available for advisors considering independence, which can be overwhelming. 
• 00:22:45 – The guest suggests that advisors should continuously reinvent and improve the client experience by identifying and implementing more efficient processes. 

Relevant Links

• Download our free ebook, The Advisor’s Guide to Starting a Podcast
• Connect with a member of our podcasting team
• Learn more about starting your own podcast

About Three Crowns

Three Crowns is a full-service marketing partner, providing the financial industry with high quality custom blogs, website design, branding, podcast production and more. We help financial advisors and fintech companies find their message and amplify their voice. From strategy to click-worthy content, to SEO optimization and social media promotion, our team is ready to help you feel confident in your communication. Click here to connect with a member of the Three Crowns team today.