Organic growth remains the primary focus for successful registered investment advisors, even those with aggressive acquisition strategies, according to panelists at RIA Edge Orange County. Brian Parker, co-founder of EP Wealth, said that a firm’s ultimate value is determined by organic expansion rather than asset size or headcount metrics.
Value comes from serving clients
“Organic growth is really what all of these businesses are ultimately valued on,” Parker said, noting that his firm oversees more than $50 billion in assets. He said it is difficult to force a new business to grow and far easier to enhance an existing operation and build a culture around it. Parker added that the industry often mistakenly prizes building a large wirehouse structure, which he said can become “very cold.” He prefers a model focused on direct client service, emphasizing that the business is about sitting at a kitchen table to help people with retirement and college planning.
Alison Burkett, senior partner at Snowden Lane Partners, echoed this view, arguing that focusing solely on acquisitions can cause other parts of the business to atrophy. She used the metaphor of the firm as a body, noting that if you only exercise one muscle, the others will weaken. Burkett said her firm ties its organic growth strategy to better client service rather than a direct sales pitch. She explained that advisors who remain curious and ask the right questions earn the opportunity to serve clients better, win referrals, and grow their practices.
When an acquisition or recruitment occurs, the first 90 days are critical for measuring success. Bryce Black, director of corporate development at Bogart Wealth, said the goal of any deal is to be additive. He said growth rates should return to pre-deal levels within two to three months and ideally exceed them. Black noted that a new team’s desire to grow can often be evaluated before they join. His firm structures some offers with 70 percent equity and 30 percent cash to filter out sellers who are only interested in monetizing their business.
Tracking the metrics of growth
Each firm employs different strategies to achieve organic growth. Black said Bogart Wealth runs a centralized business development team that handles marketing, webinars, and dinner seminars to book meetings directly on advisors’ calendars. The firm targets roughly 30 introductory meetings per advisor per month. Parker said EP Wealth has invested heavily in its direct-to-consumer marketing engine, which he described as highly measurable and efficient.
Burkett noted that Snowden Lane directs incremental dollars toward technology and back-office support, including AI tools, to free up advisors’ time. She said the firm expands by adding complementary skill sets, such as next-generation advisors or CFPs, to existing teams. If an acquisition or recruit expands their own team a year later, it indicates they want to grow their practice through services rather than just numbers. Registered investment advisors that rely on acquisitions without a strong organic foundation risk creating a hollow structure that lacks the cultural depth needed for long-term success.
The importance of early integration
Parker emphasized that resources are vital during the first 90 days of integration. He stated that advisors simply cannot have enough support during this initial period. Black agreed that the goal for any deal is to be additive. Ideally, the rates should exceed those previous levels.
Adding skill sets to the team
The firm uses AI tools to free up time for advisors. This allows them to focus more on clients. These additions include next-generation advisors or CFPs.