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Going independent has its advantages if you are ready to take the challenge. Running your own business takes a certain initiative and provides many challanges that will be very rewarding. These rewards include:

You control your own destinity.

You have the freedom to name and brand your own practice.

You have your own goals and work schedule. You are no longer under corporate america’s control.

Your payouts increase, from 25%-45% at the wirehouses to 70%-95% at the independent firms & Changing broker dealers. You have control over what expenses to incur to grow your business.

As a 1099 independent contractor, you enjoy all of the benefits of writing off your expenses against your firm’s revenue to determine the net income. The federal government are providing some attractive incentives for small businesses in the 2011 tax code, so you can be more competitive.

Building Equity in your practice. You now own your book and can sell it if you want to retire or get out of the business. Your practice can be your biggest asset.

Book mobility: If your Broker-Dealer doesn’t live up to their end of the bargain, or if the needs of your practice no longer match that of the firm you can switch to another firm that is more suitable.

You can decide to keep your firm small or grow it to a larger size by recruiting other advisors and offering additional services.

Sell Your Broker Dealer

We work with well capitalized broker -dealers who are interested in buying smaller broker dealers, or taking over their back office operations. We have seen an increased demand from smaller broker dealers considering a sale & Independent broker dealers.

There are several reasons why a broker-dealer may consider a sale:

  1. Increased rules and regulations.
  2. Increased costs associated with running the broker dealer. Especially compliance and legal costs.
  3. Increased competition from larger broker-dealers.
  4. Decreased profit from running the broker-dealer.
  5. Increased financial reporting.
  6. Taking time away from production.
  7. Owners desire to exit the business.
  8. Desire to outsource the compliance, legal, and clearing functions to another broker dealer.
  9. Broker Dealers originally formed for business lines (like M&A) where market has seen decresed demand.

There are many broker dealer with fewer than 50 representatives who are finding increased costs associated with operations, compliance, legal fees, not to mention increased risk of arbitration. We work with broker-dealers who would like to speak with you if you are considering selling your broker-dealer or just want to outsource your operations, compliance, and legal functions. Please call us for a confidential discussion. We have a network of firms who are interested in purchasing small producing broker dealers or “shell” broker dealers.

Financial Advisor Placement Services is the premier financial advisor recruiting firm, Independent broker dealer firms & Independent broker dealer payouts that specializes in placing only financial advisors. There is no cost to the Advisor!

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