BEACON POINTE WEALTH ADVISORS From Success to Significance.
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Beacon Pointe does not believe most wealth managers simply want to cash out and walk away. 3
However, many wealth managers have successful businesses, and would like to grow their firm at a faster rate and create scale while controlling risk. Ultimately, they would like certainty to their succession plan for themselves, their clients and their teams. 4
Key Concepts Scale is rewarded in our industry RIAs have a fiduciary duty to clients and a moral obligation to their teams Growth rate is critical to valuation Larger firms growing fast have more attractive valuation multiples A Legacy is a firm that lives beyond the founder Many advisors have a large percentage of their net worth in their business 5
Background on Beacon Pointe Advisors One of the country s largest independent RIAs Approximately $8+ billion* (Organic Growth) Founded in 2002 Headquartered in Newport Beach, California Significant wealth management and institutional businesses 75+ employees *As of 12/31/14 6
Beacon Pointe Advisors Industry Recognition 2015 (To Date) Forbes Top 100 Wealth Managers Barron's Top Advisor Rankings for CA (Top 8) Financial Times Top 300 Registered Investment Advisors 2014 Charles Schwab IMPACT Trailblazer Award Winner OC Register Top Places to Work in Orange County Barron's Top Independent Financial Advisors (Top 20) Financial Times Top 300 Registered Investment Advisors Financial Advisor Magazine RIA Ranking (Top 30) 2013 Investment News Top Fee Only RIAs Rep/WealthManagement.com Top 100 RIAs Forbes Top 50 Wealth Managers Forbes Fastest Growing Wealth Managers Orange County Business Journal Best Places to Work 2012 Barron s Top 100 Independent Wealth Advisors Financial Advisor Magazine RIA Ranking (Top 20) Rep/WealthManagement.com Top 100 RIAs Barron s Top 100 Independent Financial Advisors Orange County Business Journal Best Places to Work Best of Newport Beach Award (Financial Consultant category) 2011 Financial Advisor Magazine Top RIA Ranking Registered Rep Top 50 Wealth Management RIAs AdvisorOne.com Top Wealth Managers Trusts and Estates Top 50 Wealth Management RIAs Orange County Business Journal Best Places to Work 2010 Orange Coast Magazine Top Scoring Wealth Managers WealthManagerWeb.com Top Wealth Managers Investment Advisor Top 100 Wealth Managers Financial Advisor Top RIA Rankings 2009 Wealth Manager Top 50 Women in Wealth Management Registered Rep America s Top 100 RIA s Wealth Manager Top Wealth Managers Orange Coast Magazine Best Personal Wealth Managers in the OC Area 2008 Wealth Manager Top Wealth Managers Registered Rep America s Top 100 RIA s Forbes Top 10 Most Dependable Wealth Managers (Goldline Research selection, So. Cal.) 2005-2007 Financial Advisors Top RIA Firms Ranked by Asset Growth Wealth Manager Top Wealth Managers Superstars Bloomberg Wealth Manager Top Wealth Managers 7
BPWA What s It All About? Beacon Pointe Wealth Advisors is NOT being built to be sold, publicly or privately. It s about growing your business and creating certainty for you, your clients and a legacy for your business. Maximizing the enterprise value of the business. Reducing risk today while establishing long term certainty for you, your clients and your team. Maximize economies for our partners while enhancing the futures of the next generation within the business. 8
BPWA What s It All About? Partnership with Beacon Pointe Grow Faster Reduce Your Risk Create certainty for your clients and team Empower your next generation When you are ready- You have a Put for your equity You have certainty to your succession 9
How is BPWA Different? Beacon Pointe is first a successful operating RIA, NOT a Financial Model/Consolidator. Unlike virtually all of the well-known Roll-Up firms or Consolidators, Beacon Pointe has taken no outside money from Private Equity funds seeking a liquidity event. BPWA is not forced to recapitalize or have an event. (IPO, Sale) What happens to the advisors and their clients when a roll-up has their event? Nobody really knows. Beacon Pointe Wealth Advisors exists for our advisor partners and their clients. 10
BPWA Liquidity in Your Business Most owners have a significant percentage of their net worth tied up in the business BPWA provides all of the benefits of scale without the cost or risk to you Continue to build the business you enjoy with our support at a faster pace You have a guaranteed Put at Fair Market Value when you are ready in the future 11
BPWA Wants Equity in the Hands of Your Successors BPWA facilitates the transition of equity to the next generation BPWA empowers and supports the next generation BPWA creates certainty for the next generation of advisors 12
BPWA Makes RIAs Much More Efficient Leverage the back office and resources of one of the largest and most successful RIA s in the country Spend more time on things you want to do as opposed to have to do Increase margins (cash flow) 13
How Do We Help You Grow? Remove Common Distractions Compliance Back Office Daily Reconciliation Reporting Investment Research Social Media Creation/Management Enhanced Brand and Story Bigger Firm Collectively $7+ Billion Exceptional Investment Research Team/Process Impressive Institutional Client List Prepared Talks and Seminars Various Topics Step by Step Approach Prepared and Compliance Approved Custodial Referral Program Subject to AUM Moving to Custodian Recruiting/M&A Recruiting to Larger Brand/Value Proposition Proven Track Record Custodians Are More Responsive Recruiters Are More Interested M&A Firms Willing to Bring Opportunities Capital Financial Planning Scalable/Efficient Processes Education for High Net Worth Families Support From Beacon Pointe Planning Team Women s Advisory Institute Educational Platform for Women by Women Family Focus Program Planning Through the Ages www.beaconpointewai.com Online Branding/Social Media Dedicated Social Media Management Compliance Monitored Content Created For or By You Best Practices of All BPWA Partners and Beacon Pointe 14
Organic Growth Focus on clients and adding more of them Leverage the planning team and prepared talks and seminars Capitalize on the online presence and social media platform Enhanced story and value proposition for COIs Beacon Pointe s Women s Advisory Institute 15
Non-Organic Growth Recruiting/Mergers and Acquisitions Be a Hub Advisor Running an exclusive territory Increased credibility with custodians, recruiters, M&A firms BPWA provides Advisor or Firm Sourcing Due Diligence Deal Negotiation Assistance Infrastructure Deal Structure Transition support 16
Collective Wisdom and Your Leadership You are Part of the Board of Managing Directors Board will help steer company Maximize your business experience Share best practices Learn from each other $100 mm $500 mm $5 Billion $20 Billion 17
Succession with Certainty When You Are Ready You give 12 months notice A third party valuation firm is chosen to value BPWA entirely You must approve the valuation firm Whatever the FMV, BPWA must buy your remaining stock, with no discounts applied No mandatory employment contract; you are free to leave if you choose 18
Resources Planning Commie Stevens, JD Managing Director of Planning Paul Salerno, JD, MBA - Director of Planning 3 CFP s supporting planning efforts Efficient segmented and scalable approach Pre-approved presentations Over 100 customized deliverable cover pages 19
Resources Ongoing Advisor Education Date Topic Date Topic January 6th Insurance Update July 7th Understanding Client's Needs During a Divorce January 13th Planning Overview 2014 July 14th Insurance Update January 20th Pitch Materials that Work July 21st Advanced Estate Planning Part 2 (QPRTs and Irrevocable Trusts) January 27th 401(k) Training July 28th Marketing to Women at Risk February 3rd Real Estate Market/Mortgage Update August 4th Real Estate Market/Mortgage Update February 10th Insurance Update August 11th Insurance Update February 17th Creating A Smart Solutions Plan August 18th Advanced Estate Planning Part 3 (Sales to Defective Trust/GRATs) February 24th Your Beacon Pointe Story August 25th Social Security Filing Strategies March 3rd Corporate Attorney's View on Business Entities September 1st What You Should Know about Property and Casualty Insurance March 10th Insurance Update September 8th Charitable Planning Misconceptions March 17th Helping a Client When a Death Occurs September 15th How to Gift March 24th Marketing to HNW Individuals/Families September 22nd Roth Conversions March 31th Case Studies: Framing Decisions Through Planning September 29th End of Year Paperwork Issues April 7th The Role of the Private Fiduciary October 6th Bankruptcy April 14th Stock Benefits for Executives October 13th Insurance Update April 21th Understanding Medicare Supplements October 20th Marketing to Young Professionals April 28th Preparing a Strategic Plan October 27th Business Owner Retirement Plans May 5th Real Estate Market/Mortgage Update November 3rd Business ESOPs May 12th Insurance Update November 10th Marketing to Business Owners May 19th Thoughtful Estate Planning for Minors November 17th Review of the End of Year Tax Letter May 26th Keeping the Next Generation November 24th RMDs Issues June 2nd Questions and Answers with A CPA December 1st Questions and Answers with A CPA June 9th Insurance Update December 8th Insurance Update June 16th Advanced Estate Planning Part 1 (Simple Techniques) December 15th Key Items to Point out in Estate Plan June 23rd Using Materials as Touch Points December 22nd Factors to Consider With Concentrated Positions June 30th Our Website Calculator December 29th Estate Administration and Probate Issues Best Practices of All BPWA Partners and Beacon Pointe 20
Resources Beacon Pointe s Investment Committee CFAs CAIA JD MBAs 21
Resources Women s Advisory Institute Educational platform for women For women by women Dedicated resources and website Pre-approved presentations Family Focus series Events and event topics your local office can replicate 22
Resources Online/Social Media Allison Hillgren, MCM* Director of Marketing Oversees all firm social media: LinkedIn, Twitter, Pinterest, etc. Manages website, blog, posts, video content, and presentation designs Up-to-date, consistent, professional, compliant online activity and resources available to you and your team Training for advisors on how to effectively utilize LinkedIn and the online portals for your business development *Masters of Communication Management 23
Who is the Ideal Partner? $100 million and up Are NOT necessarily looking to give up total control and are NOT necessarily looking to completely cash out and walk away. Free only focused; (ancillary Broker-Dealer business okay) Using mostly 3 rd party managers, mutual funds, and ETFs (wealth managers) Excited about growing the business over the next 5-7 years minimum Prefers to work with clients and prospects Likes being part of something greater than themselves, and likes preserving control of their local market Would like to create a legacy and provide certainty long term for their clients and team 24
Presented By: Matthew B. Cooper President, Beacon Pointe Wealth Advisors Beacon Pointe Wealth Advisors 24 Corporate Plaza Drive, Suite 150 Newport Beach, CA 92660 Direct line: (949) 718-1612 mcooper@bpwealthadvisors.com
Disclosure The information set forth herein is confidential and is for the sole use of our clients and prospective clients, and only in connection with the purposes forwhich it is presented. By accepting delivery of the information, the intended recipient agrees that: a) the information set forth and the methodologies utilized herein are proprietary to Beacon Pointe Wealth Advisors, LLC ( BPWA ) and b) no part hereof will be reproduced, reprinted, disseminated, displayed, or utilized for any reason other than the purposes expressed by the client and BPWA without the prior written consent of BPWA. Opinions expressed herein are subject to change without notice. BPA has exercised all reasonable professional care in preparing this information. The information has been obtained from sources we believe to be reliable; however, BPA has not independently verified, or attested to, the accuracy or authenticity of the information. BPWA shall not be liable to customers or anyone else for the inaccuracy or non-authenticity of the information or for any errors of omission in content regardless of the cause of such inaccuracy, non-authenticity, error, or omission, except to the extent arising from the sole gross negligence of BPWA. In no event shall BPWA be liable for consequential damages. Thank you for your continued confidence in Beacon Pointe. We appreciate your business.