"They [member advisors] don't have to sign employment contracts, and they won't have any hurdles and earn outs--that's all on us," Cooper says. "The risk on us is to find the next generation of advisors that can step into their office."
For their part, Moehlman and Ainsworth from Wealth Management Network (now known as BPWA Newport Beach) said in a press release they spent three years exploring its options before choosing Beacon Pointe. They were advised by Advice Dynamics Partners, an M&A advisor in Mill Valley, Calif.
BPWA seeks to expand into the Northwest, Denver, Dallas, Boston and Connecticut markets, and to add 35 to 40 offices nationwide during the next 10 years. Cooper says his company spreads the word about its strategy through custodians, third-party recruiters and investment management contacts.
"We're proactive in educating people, but let the opportunities come to us," he says. BPWA's target market for regional partners are advisors with AUM between $100 million to $300 million.