Welcome everybody! Welcome to the 393rd episode of the Monetary Advisor Success Podcast!
My visitor on right this moment’s podcast is Alex Lewis. Alex is the proprietor of Blackbridge Monetary, a hybrid advisory agency primarily based in Irmo, South Carolina, that oversees roughly $330 million in belongings underneath administration for 415 consumer households.
What’s distinctive about Alex, although, is how, at age 29, he took on a multi-million-dollar mortgage to buy the agency from its founder as his successor, and, within the 4 years since, has made modifications to every thing from the workers to the know-how to the service construction to make the enterprise what he wished it to be… and within the course of, practically doubled the agency’s AUM.
On this episode, we discuss in-depth about how Alex gained the belief of his agency’s founder and its purchasers by step by step rising his client-facing obligations over a span of 4 years prematurely of a possible succession, how Alex and the agency’s founder negotiated a valuation and transaction phrases with a seller-financed be aware with protecting covenants that met the wants of each events, and the way Alex bought snug with a purchase order whose first month-to-month mortgage fee was greater than his whole annual wage the 12 months earlier than the acquisition and resulted in a web earnings of simply $11 within the 1st 12 months after the deal (however in the end grew sufficient that he was in a position to refinance his succession mortgage to make the previous proprietor entire and scale back the month-to-month fee).
We additionally speak about how Alex’s agency now segments purchasers into 5 service tiers primarily based on their belongings underneath administration and income (and the precise variations in companies the agency supplies to purchasers at every stage), how Alex tracks his purchasers’ particular person preferences to create what he calls “Wow Elements”, such having their favourite soda on the desk after they arrive for a gathering, which strengthens the connection between purchasers and the advisory crew, and the way Alex, shortly after taking up the agency, made the choice to rent 2 new advisors and help them by means of getting their CFP marks to have the ability to proceed to supply high-touch companies for his quickly rising consumer base and guarantee they keep underneath 150 purchasers per advisor.
And make sure to take heed to the tip, the place Alex discusses how he first entered the monetary planning business, transitioning from the world of public accounting to hunt higher work-life stability however taking a more-than-50% pay minimize to get his foot within the door, how Alex managed to not lose a single consumer after being pressured to name all 400 purchasers to allow them to know he needed to increase their charges after a service supplier dramatically elevated its personal pricing to Alex’s agency… solely to cancel the charge improve after the service supplier reversed course (and the way that motion in flip constructed much more belief along with his purchasers), and the way Alex dug right into a collection of enterprise books to determine greatest practices to systematize his personal agency’s operations, from Gino Wickman’s “Traction” to Matthew Jarvis’ “Delivering Large Worth”, as he continues to evolve the enterprise he purchased from its prior proprietor into the one which he desires it to be for himself.
So, whether or not you are enthusiastic about studying about navigating an inside succession plan, dealing with the monetary realities of taking up debt to buy the agency, or making a plan to develop the agency and its workers after taking up, then we hope you get pleasure from this episode of the Monetary Advisor Success podcast, with Alex Lewis.
