Welcome everybody! Welcome to the 393rd episode of the Monetary Advisor Success Podcast!
My visitor on immediately’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 beneath administration for 415 shopper 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 the whole lot from the workers to the expertise to the service construction to make the enterprise what he needed it to be… and within the course of, almost doubled the agency’s AUM.
On this episode, we speak in-depth about how Alex gained the belief of his agency’s founder and its shoppers by regularly growing his client-facing duties over a span of 4 years upfront of a possible succession, how Alex and the agency’s founder negotiated a valuation and transaction phrases with a seller-financed observe with protecting covenants that met the wants of each events, and the way Alex bought comfy with a purchase order whose first month-to-month mortgage cost was greater than his whole annual wage the yr earlier than the acquisition and resulted in a web revenue of simply $11 within the 1st yr after the deal (however in the end grew sufficient that he was capable of refinance his succession mortgage to make the previous proprietor complete and cut back the month-to-month cost).
We additionally speak about how Alex’s agency now segments shoppers into 5 service tiers primarily based on their belongings beneath administration and income (and the precise variations in companies the agency supplies to shoppers at every stage), how Alex tracks his shoppers’ particular person preferences to create what he calls “Wow Elements”, such having their favourite soda on the desk once they arrive for a gathering, which strengthens the connection between shoppers and the advisory group, and the way Alex, shortly after taking up the agency, made the choice to rent 2 new advisors and help them by way of getting their CFP marks to have the ability to proceed to supply high-touch companies for his quickly rising shopper base and guarantee they keep beneath 150 shoppers per advisor.
And make certain to take heed to the tip, the place Alex discusses how he first entered the monetary planning trade, transitioning from the world of public accounting to hunt higher work-life stability however taking a more-than-50% pay reduce to get his foot within the door, how Alex managed to not lose a single shopper after being compelled to name all 400 shoppers 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 price improve after the service supplier reversed course (and the way that motion in flip constructed much more belief along with his shoppers), and the way Alex dug right into a collection of enterprise books to establish finest 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.
