What makes your RIA unique?
How do you approach recruiting, both advisors and other RIAs?
Setting your firm apart in today’s fast-growing RIA space is more important than ever for the future of your business.
Our Dynasty Investment Banking team recently held our inaugural M&A Practicum in New York for our Network Partners. One of the sessions that we developed for this day-long workshop focused on building effective pitchbooks to position your business when speaking with advisors, teams of advisors, or other RIAs. It’s a surprisingly tough exercise, but the reward is the ability to articulate the highlights of your business clearly and succinctly—and to convey what makes your business unique from other RIAs and wealth management providers.
Pitchbooks are commonly used by investment bankers on the M&A side but have been less utilized by RIAs directly when trying to recruit or for M&A. However, this is changing. As our space continues to grow and professionalize, pitchbooks are becoming more critical tools in our deal-making toolbox. As our industry matures, RIAs are being held to a higher standard, and are being asked to provide more sophisticated and holistic wealth management solutions. More and more, investors are looking for comprehensive financial advice that goes beyond traditional investment strategies. How your firm goes above and beyond what a plain vanilla RIA can do needs to be articulated clearly and thoughtfully.
How you define the fundamental aspects of your business sets the tone for your interaction with potential recruits and partners, and pitchbooks are an effective way to frame an in-person conversation, or to give a long-lasting impression as a practical leave-behind.
Key aspects to keep in mind when developing a pitchbook include:
- Pitchbooks are living, breathing documents. Update your pitchbook anytime there is a meaningful change or event your business, such as AUM, revenue, advisor headcount, accolades/awards, management changes, M&A events, etc.
- Pitchbooks are most effective when tailored to your target audience. Consider the audience and its specific needs and interests. For example, retiring advisors may be more interested in succession planning advice while younger advisors may prioritize growth opportunities and M&A support.
- Pitchbooks present your firm’s value proposition. Leverage your pitchbook to showcase your firm’s competitive edge and market presence.
- For advisors, articulate your culture and the benefits of joining your firm. What are the opportunities for growth? What kind of support and resources do you offer? How do you structure compensation and incentives?
- For clients, define your firm’s approach and how your services are structured to benefit them.
- Pitchbooks tell your firm’s story. A comprehensive company overview sets the foundation for your pitchbook and puts your offering into context. Articulate your firm’s core values and long-term goals, include key milestones, executive biographies, statistics on market share, etc. to provide a clear and engaging introduction to your firm. Describe the main services you offer and highlight niche areas or unique competencies that differentiate your firm in the market.
An engaging, bespoke pitchbook illustrates your firm’s journey in the most effective manner. Your ability to communicate your mission, vision, and values builds credibility, trust, and, most importantly, an identity in the increasingly crowded RIA space.
Harris Baltch is Head of Dynasty Investment Bank
