If you’re an advisor exploring a move, the questions you ask up front will shape your long-term success. With consolidation accelerating across the industry, it’s more important than ever to vet a potential partner thoroughly. Not just for what they offer today, but for how stable and aligned they’ll be in the future.
Below is a checklist of the most important due diligence topics to cover with any prospective firm, plus practical ways to assess each one.
1) Ownership Structure: Ownership drives strategy, culture, resources, and future change. A firm you choose today may look very different after a sale
Ask: Who owns the firm today? Are they private, public, or private equity backed? What is the expected time horizon for ownership? Has ownership changed in the last several years, if so, what changed operationally for advisors?
2) Advisor Structure: Would you be truly independent or an employee? This can determine who controls decisions, your autonomy, and book ownership.
Ask: Will I be an employee or an independent contractor? Do I own my book of business and client relationships? What does my agreement say about non-solicits, non-competes, and portability of clients and client data?
Watch for assumptions based on labels like “independent” as many RIAs only support employee advisors.
3) Technology Stack and Clearing Options: Your tech and clearing experience impacts client service, efficiency, and transition friction.
Ask: Which custodians/clearing firms are supported (e.g., Fidelity, Schwab, Pershing)? Can I stay with my current clearing/custody platform? What is included in the tech stack (CRM, portfolio accounting, planning, trading, client portal, e-signature)? Can I see a live demo and talk to users?
4) Service and Back Office Support: Service is a lived experience. It affects you and your clients daily. Speak with multiple current advisors at the firm (not just handpicked references). Ask for retention rates and reasons advisors leave. If possible, talk to a former advisor about why they moved on.
Ask: Is there a service ticket/tracking system in place? Do you get a dedicated service team? What’s the escalation path?
5) Economics: Many models look attractive until you calculate your net after all line-item costs including platform fees and technology expenses.
Ask: What is my payout? How do advisory admin/platform fees get calculated? What hard costs apply (custody, trading, platform, E&O, tech, compliance, licensing, office, staffing)? Can they run a pro forma of your current book to show your true net compensation?
6) Growth Resources: The right partner helps you grow faster so you can spend more time with clients.
Ask: What marketing, lead generation, or inorganic growth support (M&A, tuck-ins) exist? What practice management resources are included (hiring, training, workflows, coaching)?
7) Culture and Access to Decision Makers: When issues arise, do you have access to management/owners?
Ask: Who are the decision makers? Will I have direct access? How are advisor concerns prioritized and resolved? How often do advisors interact with leadership (town halls, advisory councils)?
8) Compliance Posture and Regulatory History: A firm’s record affects reputation, operational risk, and long-term stability.
Do: Review the firm’s regulatory history (recent actions, pending items, patterns). Ask how they support advisors with changing rules (Reg BI, DOL, state regs, cybersecurity). Understand the supervision model, documentation requirements, and review timelines.
This is a high-level overview; each topic listed should be explored in depth. If you’d like a customized, confidential due diligence roadmap based on your book, current platform, and goals, Cross-Search can help you prepare, narrow the field, and engage the right firms with clarity.
Jodie Papike is the CEO of Cross-Search, a third-party, independent broker dealer/RIA recruiting firm that connects advisors with the right broker dealers and RIAs. For more information visit www.Cross-Search.comwww.cross-search.com
800-247-3272
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