Allen Darby is the founder and CEO of Alaris Acquisitions, a buyer advisory service that helps wealth management firms navigate the complexities of the mergers & acquisition process. Before founding Alaris, Allen launched a firm that pioneered helping accounting organizations move into the wealth management business. In 1999, Allen sold that business to First Global Inc. and subsequently established a wealth management firm which he grew by completing nine mergers and acquisitions transactions. To further focus his expertise on M&A, Allen sold his second business and joined United Capital in 2009, where he sourced and closed 27 transactions that represented approximately 40% of United Capital’s final sale valuation. Today at Alaris, Allen helps local, regional, and national wealth management firms who seek to grow their companies through acquisition.
Allen joins me today to discuss how partnering with other wealth management firms can help financial advisors grow their business to the next level. He describes how the M&A market has evolved throughout his career. He explains how advisors can evaluate potential partners and buyers and highlights three key areas they should consider before entering a partnership. He also discusses three critical things that motivate people to partner with other organizations and underscores the mindset that advisors should adopt when entering into a partnership.
“The industry is grouped at different asset levels. Firms in the half a billion dollar range are two to three-partner firms that made investments into their infrastructure.” – Allen Darby
This week on The Model FA Podcast:
● Allen’s background and how he pivoted from studying biology in college to starting his career in financial services
● How the M&A space has changed over the years
● The autonomy trade-off involved in partnering with another firm
● Different acquisition models and how they’re designed to produce specific economic outcomes
● The monetary drivers of transactions and the three things that motivate businesses to partner with other organizations
● Partnership opportunities and the qualities business owners should look for in potential partners
● How partnering with another firm addresses succession issues
● The “buyer-adviser” model and how it helps Alaris Acquisitions generate a profit
● At what AUM level should financial advisors start considering a partnership with a larger firm
● The smallest and largest AUMs Allen has transacted
● How wealth management firms can move from the hundred-million mark in AUM to a billion dollars
● The boogeyman and how the fear of losing control prevents advisors from partnering with other firms
