Exit Strategies and Conventional Bank Lending Solutions

Matt:

An advisor's exit from the financial services industry can be difficult. But thanks to some friends in the right places, you can make your exit much easier. Joined today by Aaron Hasler from SkyView, who's helping make it a lot easier for advisors. Aaron, welcome.

Aaron:

Thanks, Matt. Appreciate it.

Matt:

Aaron, tell me, why sometimes is this exit so difficult for advisors?

Aaron:

There are a number of factors that make it difficult for advisors. But one of the big issues that we've found is there's just been a lack of access to capital. Banks have traditionally stayed away from the wealth management industry, and financial advisors who want to monetize a big practice have just never had a very good way to do it. As a result, they just have taken no action.

Matt:

Yeah. That inaction is a serious problem in this industry. But how is SkyView helping?

Aaron:

SkyView has come in and created some conventional bank lending solutions. What we've done is we've created a careful network of banks that understand the wealth management industry. That is something that historically just hasn't happened. With this network of banks, what we're able to do is help financial advisors get a bank loan that helps monetize that practice.

Matt:

That's incredible. What are some of the big options that you're making available for advisors?

Aaron:

So, this is what we're most excited about. We have a team of industry veterans. We're all wealth management people. We understand our industry forward and backwards, and we're passionate about helping financial advisors. What we've come up with is a conventional program that allows for a more flexible deal structure. We can do [Tron 00:01:31] sales, we can do partial sales. And we can do something that's called a sell and stay, which allows advisors to sell their practice, but continue to stay working and involved with their clients ... which is what a lot of them really want to do.

Matt:

Because at the end of the day, this is their legacy. Right? This is everything they want to do so that they can really leave an impact.

Aaron:

This is their passion. These are their friends. They want to stay involved, and so it's very difficult for them to figure out how to step away from those relationships.

Matt:

With all that in mind, how can an advisor get started?

Aaron:

One is have a conversation. Have a conversation in your practice about what a succession plan is, what's the legacy of the business, and where does it want to go? And then come and call SkyView. What we want is people to have a conversation about what their goals are, and what the structure is that they want to exit the business. We can help them determine whether it's going to fit into a bank financing program, and then we can adjust that for them. We can introduce them to an [M&A 00:02:24] expert, and we can help them make sure that they have a plan that's going to get bank finance, that's going to meet their goals, and fully monetize their practice.

Matt:

The M&A expert's great, because it gives you a great person with a second opinion for you.

Aaron:

That extra advice is invaluable. Most deals need an M&A expert. They need that second opinion. They need that outside voice. That's really going to help them navigate the emotional side of this conversation.

Matt:

Aaron, thank you so much for some great insights, and thank you for SkyView for all you're doing for advisors.

Aaron:

Thanks, Matt. Appreciate it.

Matt:

For investment news, I'm Matt Ackermann.