Many of the largest firms in the industry have focused on inorganic growth in recent years, with merger and acquisition activity breaking new records. But these firms have also focused much of their energy and money on an organic growth strategy.
It's hard to do both well, but a recent study BY WealthManagement.com in association with the Commonwealth Financial Network provides some insight into what is driving the firm's growth this year.
Overall, the study shows that most advisor practices are growing. On average, respondents reported an annual growth rate of 11.3% in 2023, up from 9.4% in 2022. Part of that growth, of course, was due to market appreciation, with the S&P 500 Index up 26% in 2023.
Wealth Management IQ, a division of WealthManagement.comconducted the email survey from May 22, 2024 to June 11, 2024 and received 453 responses. Respondents were from a variety of industry channels, including IBD (32%), RIA (29%) and hybrid firms (26%). Financial planners or investment advisors (43%) and owners or owner/advisors (34%) were the most common roles.
Click for key recommendations from the Driving Firm Growth 2024 study.