What you can learn from my RIA merger, part 2

Two and a half years ago I merged my RIA — the one I built from the ground up over 20 years — with a larger firm after a long process of soul-searching, shopping around and a fair amount of prayer. 

As I wrote in a column last year, the process was by turns exciting, scary, intimidating — and ultimately successful. Despite bringing me to the edge of sanity a couple of times, it was the right move for me, for my team and most importantly for my clients. 

So now that the honeymoon is over and the cake and champagne are gone, here’s my report on how my post-merger “marriage” has been going.

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Better for the ‘kids’

I especially want to highlight what this relationship has done for “the kids” — the clients I now share with my new partner. I now offer them bespoke estate planning services, tax consulting and other add-ons, often with little or no additional fees. Another valuable add-on is a service that compares Medicare supplements and MediGap plans and makes recommendations in the context of a total financial plan. This has been an amazing benefit for the large portion of my client base consisting of thriving retirees. 

As if that weren’t enough, I’m also able to provide access to a service that lets clients vet and select caregivers for aging parents. That means I’m able to introduce my “sandwich generation” clients to a less stressful way of navigating a potentially difficult life passage.

Finally, both my clients and I now have the confidence that comes from knowing that if something were to happen to me, a team of trained, fiduciary professionals will be able to step in and continue to guide them on their financial journey. By merging with a firm that appreciates the level of personal attention I have trained my clients to expect, my clients know that they are more than an account number and some entries on a list of assets.

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Docking with the ‘mother ship’

All that said, I wish I had been more aware up front about the scope of migrating systems and technologies from my original RIA to the new firm. Anyone who has ever managed a switchover in CRM systems or any other key business platform knows how complex, confusing and even intimidating it can be. The pace of change I’ve had to accommodate, even after the merger was concluded, has been nothing short of mind-boggling.

For example, the amount of prep we had to do just to make sure the old database could “talk” to the new database and accurately migrate the data was much more extensive and time-consuming than I expected. This was true despite my new company’s efforts to make the process as smooth as possible. They had a clear game plan for the changeover that covered everything from back-office function to client communication, and it was obvious that they had successfully executed similar migrations in the past. 

With the benefit of hindsight, it’s inevitable that a process as complex as docking a smaller RIA with a mother ship would involve managing major shifts in company culture, communication styles and even ego adjustments. After all, I started my firm in 2002 with not much more than a computer, a phone, my professional credentials and a desire to succeed. 

My best advice to someone anticipating a similar merger: Plan on spending twice as much time facilitating the migration as originally estimated.

Singular/plural communication styles

The adjustments required in client communication and marketing also took me by surprise. 

Before the merger, I prided myself on the individual style and voice I had carefully cultivated over the years, one that was attractive to prospects and consistent with the experience we provided to clients.

Now, it did not come as a total surprise to me that becoming part of a larger corporate culture would involve some adjustments in my marketing style and persona, but I don’t think I was quite prepared for some of the particulars involved in terms of frequency, presentation and tone. Without question, it’s still “me,” but my communications are mediated through a lens carefully crafted to serve not just my needs, but also those of my corporate colleagues. Same message but a different accent, if you will.

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On the plus side, like any solo entrepreneur I wore a lot of hats, and that responsibility carried a lot of stress with it. Post-merger, I’ve learned to love the liberation that comes with being a part of a dedicated team of professionals. For example, previously when the markets were choppy I alone decided on messaging, got it prepped, and blasted it out to my clients. Now I have the luxury of a corporate communications office that provides professional, authoritative and appropriate communications, reassuring clients that someone is minding the store and seeing to their interests. 

This actually gives me more control over my own time so that I can reach out individually to clients as needed and be even more thoughtful in the process than I was able to be when the entire effort depended on me. This, too, is a win for my clients. I also have the skilled backing and internal guidance of a supremely professional organization. This allows me to face my clients with confidence, knowing that the resources I need to help them are readily available to me.

Ultimately, the merger has given the gift of time to my clients and me: time to reflect, to prioritize and to communicate more effectively and thoughtfully. That just might be the biggest win of all.