Whether you’re a potential breakaway advisor looking for liquidity to leap into independence or pay off a promissory note, or a business owner seeking funds for acquisitions or succession planning, you have an important decision to make when it about access to capital.
Because as the wealth management industry landscape evolved, advisors became the beneficiaries of several avenues to consider.
Throughout this series we have discussed “selling” a portion of the business (i.e. equity) to one of the many minority investors or private equity firms in the industry, as well as independent broker-dealers and supported versions of independence that offer forgivable loans to fund a transition.
But what about direct financing options?
James HughesSVP and Head of Investment Advisory Lending at Live Oak Bank, joins the show to talk about taking on debt to fund your company’s next phase of success.
The No. 1 SBA (Small Business Association) lender in the country, the bank began lending to consulting firms when James joined in 2013, at a time when there were few other options in the space.
In this episode, James talks to Louis Diamond about the many reasons advisors choose to work with a bank, including:
- Borrowing vs. Selling Equity – and what factors a current or potential company needs to consider when choosing its financing path.
- The unique position Live Oak holds in the industry – and why large institutions and local banks are less inclined to fund an independent wealth management practice.
- Understand the differences between different use cases – and what you need to know about accessing capital for succession, acquisition, growth or financing a leap into independence.
- Succession Planning – and how Live Oak is offering an alternative to business owners and next gens alike.
- Access to capital for outliers – and how a consultant might benefit from financing a transition with debt or equity.
- And much more.
Taking on debt versus selling equity is a business decision not to be taken lightly, making this episode important for both prospective and current business owners alike.
