If you’ve spent any time on social media or flipped through advisor news articles in recent weeks, you’ve likely seen headlines and posts pointing to a study by Cerulli Associates that found approximately one-fifth (19%) of client assets are lost when advisors transition to a new firm.

Based on the advisors surveyed, lost revenue during the transition period (71%), learning new technology systems (75%), and operational matters (77%), are the top challenges that often get in the way of this process.

This data is valid and well-researched. But, as someone who has helped more than 500 advisors find better homes for their books of business, I’m here to tell you that you should look past it.

Personally, in my 21 years as an advisor recruiter, I’ve not once seen an advisor lose 19% of client assets during a transition. Of course, this is not a slight on the data itself—it’s an important distinction to be made that advisors who lose substantial client assets during a transition are likely either moving to the wrong firm, or making a drastic change where losing client assets is expected.

According to Grier Rubeling, founder of Advisor Transition Services, “Switching firms should lead to some client attrition. If you’re leaving a firm with the goal of having an efficient practice, then a transition is the perfect time to part ways with clients who don't fit your new model.”

I believe that your ability to maintain client assets through a transition is fully dependent on how thorough the due diligence process is to ensure you’re joining the right firm. When you find a firm that is positioned to help you grow, is values-aligned, and will improve your client’s overall experience, the assets will follow through.

Alignment Leads To Retention And Growth
As Grier says, making a transition is a great time to get really clear on who your ideal clients are and what qualities to look for in a potential firm. To start, I recommend asking the following questions:

Once you recognize where your strengths are, you can use those strengths to set the base criteria for a potential new firm—this ensures a lateral move, and limits the risk of clients jumping ship. Grier adds, “Focus on a unique value proposition and company culture. Recruiting and retention are easier when you have advocates.”

Plan For Tomorrow, Not Today
As a consumer, think about how quickly your expectations and needs have evolved in recent years. We’re expecting instant gratification via technology, faster customer service, and access to financial tools that weren’t even available five years ago.

Your clients are no different. As an advisor looking to make a move, you need to think about what the client may want from you in five or ten years, that perhaps they’re not asking for today. Then find a firm that is willing to evolve to meet those needs—this is key for client retention.

For example, I’ve recently spoken with multiple advisors who’ve expressed the importance of moving to a firm that will allow them to give clients advice on crypto. Why? Because clients are starting to ask.

If you don’t believe me, look at the recent study by New York Digital Investment Group:

Investors are overwhelmingly confident that they’d switch to an advisor who could give them advice about crypto. When looking at potential firms, thinking about your long-term success shows your clients that you’re thinking about them long-term.

Avoid (Or Lessen) An Operational Headache
A common misconception is that when you join a larger firm, the operational side of the transition—repapering all of your clients and getting set up on the firm’s new system—will be better executed than at a smaller firm. Nothing could be further from the truth.

Size and brand recognition don’t matter when it comes to how long and how tedious the transition process will be. This is why advisors (77%) who took the Cerulli study listed operational matters as the biggest barrier. It’s a necessary evil, which is why I recommend advisors ask about their potential new firm’s transition technology and support as part of their due diligence.

“Repapering an entire book, all at once, on a short timeline with legal and logistical limitations will put a strain on any ops/tech,” says Grier. “The more prepared you are, the easier the process is. Lost revenue is unavoidable. Transfers of assets take time and you can't bill on assets that aren't there. Plan accordingly.”

Ask the potential firm how long their transitions typically take, what kind of support both you and the clients will have during the process, and which technology systems they use to make the process more streamlined. Transition platforms like Docupace can help tremendously in saving time, streamlining record keeping, and onboarding new clients in nearly half the time it would typically take.

Our industry runs on data. It’s how we help advisors, help their clients. But in some cases, even a tech founder like myself would encourage you to look beyond the data and think about what makes the most sense for you and your clients. Chances are, with the right support and planning, making a transition could be the single best decision you ever made.

Ryan Shanks is founder and CEO of FA Match, a digital recruitment platform that connects experienced advisors with financial services firms equipped to help them thrive. Ryan brings over 20 years of experience as a recruiter and “sports agent” to financial advisors. Learn more at www.famatch.com.