Outsourcing is a Competitive Advantage when you have Adhesion on your Team

With Adhesion on your team, you can leverage our operational expertise and capacity, powered by institutional–class technology – a substantial investment beyond the reach of most advisory firms. Leave the details to us, so your firm’s principals can spend more time ON the business – building enterprise value – rather than IN it.

The Outsourcing Advantage

Many advisors find greater opportunities for their clients and firms by outsourcing essential, but non–core, functions of their business. There are two key benefits to this strategy:

  1. It helps advisors compete effectively with firms much larger than theirs; and
  2. It lets them focus their efforts on the core business of providing wealth management.

Boost Productivity, Control Costs

An advisors’ most productive time is spent deciphering the world of wealth management, financial planning and investment strategies, and applying them to the clients they serve. Leveraging outsourced specialists allows advisors to spend more time on these most valuable activities.

Most wealth managers agree that their cost structure is dominated by labor costs – in particular, the compensation of non–owner professionals. Dependence on these individuals – and consequently, the cost to retain and recruit them in the future – is the Achilles’ heel of the wealth manager business model. Outsourcing operational functions is a cost–effective alternative that helps managers grow through a more sustainable — and predictable — cost structure.

Client Retention

In survey after survey, the top reasons clients switch to a new advisor consistently point to dissatisfaction with advisor access, communication, and service. And advisors are getting the message. A growing majority indicate that “improving the client experience” is a high priority for their business.

One of the core principles behind Adhesion’s investment service model is to give advisors the time to laser focus on the client–facing aspects of their business. With Adhesion on your team, you can confidently leverage a specialist to handle the investment delivery aspect of your business while you focus on servicing your clients and building your practice.

A Race To Scale

The independent, fee–based advisor industry is facing tectonic shifts due to increasing competition, rising regulatory burden, the growing complexity of investing, and expanding client service demands. These shifts are the catalyst to an industrywide transformation as advisors seek solutions to these challenges.

The industry is recognizing that scale is a requirement not only for success, but sustainability. The scale dilemma is being addressed in three ways. And Adhesion’s integrated investment solution adds tremendous value to advisors opting for any of these strategic paths:

  1. Being acquired
    For advisors seeking an acquirer, partnering with Adhesion early on helps maximize enterprise value. Acquirers value businesses that operate efficiently, have institutionalized their operational processes, removed key employee dependencies, and effectively leverage advanced technology in the delivery of services to clients.
  2. Acquiring books of business
    Conversely, acquirers of advisory practices need a flexible and highly scalable operating platform that can easily absorb large chunks of increased business without negatively impacting existing operations and client service. Adhesion has proven to be the perfect partner for acquirers by providing instant access to additional capacity and whose platform’s features provide an attractive recruiting aid.
  3. Partnering with specialist service providers to leverage the benefits of their massive scalability
    Partnering with Adhesion’s scale allows advisors to compete effectively with much larger firms, and frees principals to focus on client–facing and business building activities.