Typically, the more yes answers you give, the further your firm is along the continuum. But there is no clear-cut line of demarcation. One way to measure it is by scoring the answers:
- If you answered yes to up to five of the questions, you may have a multiadvisor office.
- If you answered yes to five to 10 of the questions, that would more likely suggest you have an ensemble organization.
- If you answered yes to 10 questions or more, you likely have an enterprise.
Sure, there are exceptions to this simple approach, but it is a starting point.
As our industry becomes increasingly complex and regulated and more advisors join together for whatever reason, it will be useful for those pursuing change to clarify the type of organizations they want. In such cases, advisors can use these 15 questions to help themselves do the following:
- Find others like themselves with whom to network;
- Help younger advisors make more informed decisions about the type of practice they want to affiliate with;
- Gauge expectations if they are discussing a merger; and
- Think strategically about where their business is and where they want it to be.
By articulating these goals, the questions can be very helpful in preventing problems down the road.
Joni Youngwirth is the managing rincipal of practice management at Commonwealth Financial Network®, member FINRA/SIPC, a registered investment advisor, in Waltham, Mass. She is available at [email protected].