- \n
- Why technology matters when selecting a buyer for your RIA <\/li>\n\n\n\n
- List what your firm currently has vs. technology platforms you need<\/li>\n\n\n\n
- Note any expenses associated with transitioning to the new platform<\/li>\n\n\n\n
- What type of impact could new technology have on your staff\/clients? <\/li>\n<\/ul>\n\n\n\n
Why Technology Matters When Selecting a Buyer for Your RIA<\/strong><\/h2>\n\n\n\n
It\u2019s essential to find a buyer that will partner with you, treating your practice with respect and care similar to your own. However, too many firms overlook how important technology can also be in finding a suitable partner during this process. From improved operational efficiency to better client service capabilities, up-to-date tech can offer a range of building blocks with the potential to enhance your acquisition journey (when implemented correctly). <\/p>\n\n\n\n
So, as you evaluate potential buyers for your RIA, consider researching their existing infrastructure early on: <\/p>\n\n\n\n
- \n
- Do they have access to necessary tools that can help them\/you deliver maximum value for clients? <\/li>\n\n\n\n
- Have they invested in cutting-edge solutions to give them an edge over competitors? <\/li>\n<\/ol>\n\n\n\n
Answering these questions can help you determine if a potential buyer has what it takes to help handle your everyday operations. Additionally, ask potential buyers what other technologies they plan on using in the future. This may give you better insight into their long-term strategy beyond the acquisition.<\/p>\n\n\n\n
Another important factor to consider is whether or not they are willing to invest in new technologies as needed. That\u2019s why you may want to verify that there\u2019s room within their budget for upgrades or additional software purchases. This can be especially important if your current platform-to-be wouldn\u2019t meet certain industry standards or regulations<\/p>\n\n\n\n
Evaluating buyer candidates in areas such as their existing infrastructure, planned future investments, and budget flexibility are key steps toward ensuring that you\u2019ll both be well-equipped for success upon completion of the sale process. <\/p>\n\n\n\n
Considering Selling Your Firm, but You Don\u2019t Feel Sure of How To Screen Buyers? Read This.<\/em><\/strong><\/a><\/h3>\n\n\n\n
List What Your Firm Currently Has vs. Technology Platforms You Need<\/strong><\/h2>\n\n\n\n
Before you start the process of selling your RIA, it’s important to inventory all of the technology platforms that your firm is using.<\/strong> This may vary from websites and databases to customer relationship management (CRM) software and financial planning tools. Once you have a list compiled, evaluate each platform to determine if they are meeting all of your current needs.<\/p>\n\n\n\n
Next, consider whether or not they will continue to be advantageous after the sale is complete. If anything won\u2019t, you may need additional technology solutions or upgrades to ensure a successful transition for both parties. Conducting a gap analysis can help you identify technological areas in need of improvement or attention.<\/a><\/strong> <\/p>\n\n\n\n
The process compares the present state of your firm with its desired end state or target. As a result, closing the \u201cgap\u201d revealed between these two states can become your focus. When evaluating potential buyers, this can help you compare and contrast features offered with those that your RIA currently has (or lacks). <\/p>\n\n\n\n
There are several things that should be taken into consideration when conducting a gap analysis of technology functionality between your current setup and potential buyers\u2019 platforms. For example, you should analyze their\/your software compatibility, hardware requirements, cost-effectiveness, scalability, security protocols, customer service capabilities, and so on. <\/p>\n\n\n\n
In addition to these factors, consider the likely duration of resulting changes taking effect. If there are any associated costs with transitioning from one data management system to another, they\u2019ll have to be included, as well. Lastly, consider how well-equipped potential buyers\u2019 software platforms are at handling regulations such as the General Data Protection Regulation (GDPR).<\/a><\/strong><\/p>\n\n\n\n
Another key factor is what type of training and support prospective buyers could provide to you, your team, and your clients. Buyers who have an established relationship with a larger organization may also be able to provide additional collateral benefits. These may include back-office wealth management support, access to multiple distribution channels, and more. Meanwhile, a lack of these things could hinder an advisory firm\u2019s financial services. <\/p>\n\n\n\n
Note Any Expenses Associated With Transitioning to the New Platform<\/strong><\/h2>\n\n\n\n
It\u2019s especially important to be aware of all possible costs associated with transitioning to a new tech platform. The main expense will probably be the software license itself. These typically range from hundreds to thousands of dollars depending on the features, capabilities offered, and how many people will use the program(s). <\/p>\n\n\n\n
Some software licenses also require additional setup fees or training fees in order to get up and running quickly. So, ask upfront about any monthly or yearly subscription fees. Similarly, note any maintenance or support costs that might be incurred after the purchase. Data migration costs can also be an additional expense. <\/a><\/strong><\/p>\n\n\n\n
\u201cMigration\u201d refers to the transfer of your (and often, your clients\u2019) digital information from one system into another. Its price can vary, based on the type and volume of data being transferred. However, it can be a necessary expense when switching platforms. If you want to make sure all existing customer information is moved over accurately, safely, and with the least drain on your team\u2019s work hours, it\u2019s often worth the cost.<\/p>\n\n\n\n
Depending on the new tech or cloud platform you choose, you may also need to purchase additional servers or storage devices to house\/stream your data securely and efficiently. Your hardware needs could change over time as technology advances, so budget for future upgrades, as well.<\/p>\n\n\n\n
What Type of Impact Could New Technology Have on Your Staff\/Clients?<\/strong><\/h2>\n\n\n
\n![\"\"](\"https:\/\/viawealth.com\/wp-content\/uploads\/2023\/02\/selling-your-RIA-www.viawealth.com_.jpg\")
<\/figure><\/div>\n\n\nLastly, it’s critical to consider the potential impact of a buyer’s new technology on your staff as well as <\/em>clients. On the upside, their technology could help streamline processes and reduce costs. This could mean boosts like the faster transfer of funds to improved communication with clients.<\/p>\n\n\n\n
Possible downsides include staff and clients\u2019 resistance to taking on new technologies (making additional support, such as training and troubleshooting necessary). Similarly, greater reliance on a particular software can sometimes lead to tougher decisions with less data available from your sources. This may leave staff and clients with fewer options for their portfolios. <\/p>\n\n\n\n
In other words, look before you leap. Taking the time to understand the likely outcome of new technological changes can help you identify more efficient ways of doing business. That can lead to providing a higher-value client experience. It could also reveal potential cost savings.<\/p>\n\n\n\n
ViaWealth LLC<\/a><\/strong> is ready to grow with your firm. Schedule an appointment<\/a><\/strong> to find out what we can do for you over the long haul. You can follow us on social media,<\/strong><\/a> as well.<\/p>\n\n\n
![\"\"](\"https:\/\/lh3.googleusercontent.com\/uch8q6a4oLYXT5OWPLmY50cR22aVaI4aO832A9FQAtkhdBllxKxqbHSY_IdVKA684QAh2qfDlsqSXSVbhp0Kw-JjE_5DvBs0FSVtt4O40OMLwPvpFcRBqJgWkt59qc5IcFq18cCupSJ1XNIewri2ug\")
<\/a><\/figure><\/div>\n\n\n