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Advisor Group Launches Financing Program for Continuity and Acquisitions

By Alex Padalka October 29, 2020

Advisor Group says it’s launching a new program and various enhancements on its succession planning and acquisitions platform.

The Continuity Coverage and Acquisitions Program builds on Advisor Group’s existing M&A resources by offering a dedicated pool of capital from the company’s balance sheet to qualified acquirers for buying practices within and outside of Advisor Group’s network, according to the company. The goal of the program is to eliminate the need for Advisor Group network firms to seek financing from a third party, the company says.

Advisor Group says it will offer competitive rates on loans and access to other benefits such as savings on originating and processing fees that third-party lenders normally charge. The company also claims that it’s streamlined the lending processing time by around 50% compared to what’s typical of the industry.

In addition, the program will allow affiliated financial professions without continuity plans in place to tap “a robust continuity backstop program,” according to the company. Advisor Group’s professionals will match such practices with a compatible partner and structure the deal to take effect in the case of the professional’s sudden death or disability, free of charge, the company says.

In such an event, the new program will tap Advisor Group’s balance sheet to finance the acquisition with the goal of preventing disruptions to service or degradation of the business, according to the company.

Furthermore, if the program can’t find an immediate buyer, Advisor Group will act as the default buyer, the company says. The company says it would then turn to its financial professional matching service to locate a suitable continuity partner.

Advisor Group says it plans to introduce the program in the first quarter of next year with a phased rollout, starting with a pilot and expanding it to all Advisor Group financial professionals throughout 2021.

In addition, Advisor Group says it rolled out the Prepared Buyer and Prepared Seller programs, which offer training and education that builds on initiatives by the practice management team at Ladenburg Thalmann, which merged with Advisor Group in February. The programs offer education and consulting support in the areas of practice valuation, sourcing funding, minimizing transaction risk, identifying a successor and more, according to the company.

Advisor Group announced the new programs this week at its virtual national conference, ConnectED Canvas.

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Tags:  Succession planning , Ladenburg Thalmann , Advisor Group

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