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LaSalle St. offers zero interest loans to support succession planning.

LaSalle St. Launches Zero-Rate M&A Loan Program For Financial Advisors To Accelerate Succession Planning Transactions

Versatile Solution from Chicago-Based IBD Enables its Financial Advisors to Acquire Books of Business from Sellers Affiliated with LaSalle or With Other Firms, Free of All Fees and Markups

Program Facilitates Win-Win Deals for Both Retiring and Growing Advisors Through Healthy Partnerships, Valuations and Transitions

Firm to Deliver Interest-Free Loans from $250,000 to $750,000 Over Next 12 Months, Eligible to All Affiliated Financial Advisors, to Acquire Other Advisor Businesses

CHICAGO, April 30, 2020 /PRNewswire/ — LaSalle St., a family of wealth management firms encompassing independent broker-dealer and registered investment adviser (RIA) platforms, today announced the launch of its new Zero-Rate M&A Loan Program to support its financial advisors in executing succession planning deals, irrespective of the firm affiliations of their transaction partners. The unique open-platform program charges no interest and no markup fees in order to facilitate mutually beneficial deals for both retiring and growing advisors as they create healthy partnerships, valuations and transitions that enable a smooth client experience throughout the process.

LaSalle St.’s new Zero-Rate M&A Loan Program substantially expands loan funding capacity for its pre-existing zero-interest rate succession loan capabilities, while delivering a comprehensive spectrum of consultative and valuation services free of charge to the 300 financial advisor businesses across the country affiliated with its broker-dealer LaSalle St. Securities, its RIA LaSalle St. Investment Advisors or both platforms. LaSalle St. is targeting the delivery of loans to its advisors over the next twelve months, with average loan sizes to range from $250,000 to $750,000, and is delivering this program on the basis of the its firms’ exceptionally strong balance sheets, a product of decades of financially prudent leadership under a privately-held ownership structure with a commitment to careful, long-term growth.

Mark Contey, Senior Vice President of Business Development for LaSalle St., said, “We are excited to launch our new Zero-Rate M&A Loan Program because it demonstrates our unique commitment to saving financial advisors money while working closely with them, so they can better grow their business and serve clients. Far too often, advisors face unnecessary constraints when pursuing succession planning deals. Paying 7% to 10% interest rates is a major obstacle, as is involving third-party lenders that require time-consuming extra paperwork and approvals. For that reason, we expect to see significant interest from our advisors out of the gate and fast growth in the months to come.”

“Unlike other independent wealth management firms with broker-dealer and RIA platforms, our sole goal is to help our advisors facilitate their M&A goals, as opposed to treating advisor M&A as a margin-grab opportunity,” continued Mr. Contey. “We’re proud that our decades of careful stewardship of our businesses, under private ownership with an eye to long range planning, has provided us with a uniquely strong balance sheets that empower investing in our advisors through programs such as this.”

The Zero-Rate M&A Loan Program includes financing features that can empower affiliated advisors to multiply their assets under management and annual production as a result of each transaction:

  • Zero-percent interest rate and zero markup fees for loans provided directly by LaSalle St., from its ample capital reserves, to advisors affiliated with its broker-dealer or RIA firms.
  • Loan terms designed specifically to suit each unique M&A opportunity, with total amount, periodic payment and timeframe to maturity all set collaboratively for advisor success.
  • Flexible program allows repayment to LaSalle St. and/or earnouts to selling advisors through the acquiring advisor’s revenues from the new book of business.
  • Retiring advisors may temporarily remain on the LaSalle St.’s platforms after the transaction closes, to ensure their legacy is upheld in accordance with the deal terms.
  • Freedom for affiliated advisors acquiring books of business to choose deal partners that either are affiliated with LaSalle St. Securities, LaSalle St. Investment Advisors or an outside firm.

In addition, the Zero-Rate M&A Loan Program provides affiliated advisors with strategic guidance on conducting seamless and efficient succession planning deals:

  • Finding Compatible Deal Partners: Advisors seeking retiring sellers from whom to acquire books of business can receive insights on best practices for identifying and winning over ideal candidates. When both parties are already on LaSalle St.’s platforms, matchmaking services also are available.
  • Achieving Fair Practice Valuations: Before the deal is finalized, acquiring advisors can receive an objective assessment of the acceptable price range for the target book of business, based on the most relevant quantitative and qualitative factors. LaSalle St. also may assist in price negotiations where appropriate.
  • Transitioning Clients for High Retention: Once the deal is finalized, advisors receive smooth onboarding services from LaSalle St. that maximizes the potential for new clients to stay with the practice after their previous advisor exits the relationship. This includes both operational responsiveness and practice management expertise.

Dan Schlesser, LaSalle St.’s Senior Vice President and Chief Financial Officer, said, “After spontaneously assisting in a few succession planning deals in recent years, it became clear that many advisors on our platform have great enthusiasm and need for a truly one of a kind approach in the industry. Our strong financial position has enabled us to enhance our process, building it out with skin in the game and absolutely no hidden agenda. Going forward, we anticipate unlocking growth potential for many more advisors, and in the process accelerating our own growth substantially.”

About LaSalle St.

LaSalle St. is a family of firms comprising LaSalle St. Securities, an independent broker-dealer; LaSalle St. Investment Advisors, a SEC-registered investment adviser; and LaSalle St. Insurance Services, a provider of annuity and insurance products. It has a singular mission of supporting the growth and success of independent financial advisors across the country. Founded in 1974 and based in Chicago, Illinois, LaSalle St. supports more than 300 financial advisors, has approximately $10 billion in total client assets and is registered in all 50 states. The LaSalle St. companies offer a wide range of services, including brokerage, advisory, investment and insurance. The firm clears primarily through National Financial Services, with custodial services through NFS parent Fidelity Investments. For more information, visit https://lasallest.com/