Osaic

Wealth management firms should track the lives they impact beyond the size of their client books, KMS Financial Services CEO Erinn Ford says in an episode of Financial Planning’s Podcast.

Faced with the retention risk from the RIA-only channel, firms are trying to alter their company cultures and questioning traditional approaches.

The recent moves display the stakes of the competitive recruiting fight, which has led to firms like AmeriFlex seeking to give advisors greater flexibility and resources.

Rivals will be waiting to seize on any changes that may irk some 4,400 representatives poised to operate under a new parent IBD network.

The record level of transactions — as well as long-term industry shifts — often prompt advisors and other wealth management professionals to assess their options.

With the industry closely watching the complex integration, the selling network's parent divulged how it struck the $1.3-billion agreement to form a giant IBD.

The firm hasn’t made any decisions about advisor retention bonuses, but some top shareholders will earn tens of millions of dollars once the deal closes.

The acquisition of Ladenburg Thalmann for $1.3 billion would take the private equity-backed firm into the realm of the largest firms in the sector.

The Reverence Capital Partners-backed network would expand into nine subsidiary brands with 11,500 advisors under the deal, taking the selling firm private.

Median revenue surged by 18% in the sector, but forward-looking companies have already adjusted to a fast-changing industry.