#FASuccess Ep 393: Taking The Threat Of A Multi-Million-Greenback Succession Mortgage To Make The Enterprise What You Need It To Be, With Alex Lewis – Cyber Tech

Welcome everybody! Welcome to the 393rd episode of the Monetary Advisor Success Podcast!

My visitor on right now’s podcast is Alex Lewis.  Alex is the proprietor of Blackbridge Monetary, a hybrid advisory agency based mostly in Irmo, South Carolina, that oversees roughly $330 million in property underneath 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 all the pieces 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, 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 shoppers by progressively rising his client-facing tasks 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 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 fee was greater than his complete 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 entire and cut back the month-to-month fee).

We additionally discuss how Alex’s agency now segments shoppers into 5 service tiers based mostly on their property underneath administration and income (and the precise variations in companies the agency supplies to shoppers at every degree), how Alex tracks his shoppers’ particular person preferences to create what he calls “Wow Components”, such having their favourite soda on the desk once they arrive for a gathering, which strengthens the connection between shoppers and the advisory crew, and the way Alex, shortly after taking up the agency, made the choice to rent 2 new advisors and assist 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 underneath 150 shoppers per advisor.

And make sure to hearken to the top, the place Alex discusses how he first entered the monetary planning business, transitioning from the world of public accounting to hunt higher work-life steadiness however taking a more-than-50% pay minimize to get his foot within the door, how Alex managed to not lose a single shopper after being pressured to name all 400 shoppers to allow them to know he needed to elevate their charges after a service supplier dramatically elevated its personal pricing to Alex’s agency… solely to cancel the payment enhance after the service supplier reversed course (and the way that motion in flip constructed much more belief together 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 needs it to be for himself.

So, whether or not you are desirous about studying about navigating an inner succession plan, dealing with the monetary realities of taking over debt to buy the agency, or making a plan to develop the agency and its workers after taking up, then we hope you take pleasure in this episode of the Monetary Advisor Success podcast, with Alex Lewis.

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