Broker Dealer Acquisition Types

Broker Dealer acquisition types
Vlog 10/6/17

It’s no secret broker dealer consolidation has continued at a rapid pace in 2017. While much has been said about why we are continuing to see consolidation, it’s important for advisors to understand mergers are not one size fits all.

Here are the most common types of acquisitions, listed from least disruptive to most disruptive.

1) When a purchaser buys the entire broker dealer leaving everything in tact. This results in not much change for advisors.

2) When a broker dealer acquires a broker dealer and then rolls the advisors into their firm. This is what we are seeing now with LPL’s acquisition of the NPH broker dealers. Advisors should take time to determine what changes, if any, will affect their business and if compensation/expenses will change with this scenario.

3) When a broker dealer goes out of business and does not have an acquiring firm to take over. This is the most disruptive/worst case scenario for any advisor. When this happens, although rare, it leaves advisors having to quickly find a new firm to affiliate with.

Jodie Papike

Jodie Papike is the CEO & Managing Partner of Cross-Search, the first third-party, independent broker dealer advisor and executive placement firm. Since joining Cross-Search in 1997, Jodie has been consulting with financial advisors transitioning to new independent broker dealers, guiding them through the entire process of identifying their most appropriate options, negotiating a deal and transitioning clients. Jodie has an intricate knowledge of the securities industry and a deep understanding of each of the major independent broker dealer firms, enabling her to help advisors find and transition to a broker-dealer that best suits their needs. Cross Search has placed thousands of advisors, producing more than 375 mill. in gross dealer concessions. Jodie takes the utmost pride in finding a firm for an advisor that will not only better their career, but will also be a good home for them for years to come. Jodie is a frequent speaker at industry conferences, is regularly quoted and published in publications such as Investment News, Registered Rep, Financial Planning, Life Insurance Selling and Advisor One. Jodie earned a Bachelor of Arts degree from San Diego State, graduating with honors.

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