a first financial bank company
SPRING 2022
LETTER FROM THE FOUNDER & CEO Oak Street Funding® Vision Statement
As business leaders, we need to provide the vision and direction to successfully navigate potential headwinds that may disrupt business growth, whether they be geopolitical conflicts, pandemics, or economic shifts. Most businesses have been recently impacted, in some way, by inflation, talent shortages, rising interest rates, and cybersecurity threats.
To be the lender of choice in the specialty markets we serve, helping our clients and communities thrive.
PUBLISHER Oak Street Funding EDITORIAL DIRECTOR Rebecca Haynes CONTRIBUTING WRITER Scott Flood ART DIRECTOR Lindsey Schwomeyer
The Bridge is a newsletter produced by: Oak Street Funding 8888 Keystone Crossing Suite 1700 Indianapolis, IN 46240 844-395-8241 Loans and lines of credit subject to approval. Potential borrowers are responsible for their own diligence on acquisitions. CA residents: Loans made pursuant to a California Department of Business Oversight, Finance Lenders License (#6039829). The materials presented are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional or legal advice or legal opinion by Oak Street and should not be used as a substitute for obtaining professional or legal advice. The use of this paper, including sending an email, voice mail or any other
Beyond dealing with external forces, running a business has never been more complicated than it is today, as automation has further propelled the speed of change. However, the positive and profound impact we can make on our employees, clients, and communities motivates us to overcome disruptions and focus on growth solutions so our economy, businesses, and society can continue to thrive. In this expanded issue of The Bridge®, we explore ways to overcome some of the disruptions facing the industries we serve, such as: •
Inflation – Adjusting fees to stay competitive (page 5)
•
Talent Shortages – Using aqui-hire to bring in new talent (page 10)
•
Automation – Implementing automation to remain relevant (page 14)
•
Leadership Transition – Developing the next generation of leaders (page 18)
•
Cybersecurity – Mitigating the threat of a cyberattack (page 26)
At Oak Street Funding, we have leveraged many of these strategies to continue to successfully grow. Since 2003, we have strategically navigated market changes and business disruptions in order to support our clients’ growth through acquisition, succession, partner buy-in, or expansion. Through our own ownership changes, rising and decreasing interest rates, and stock market fluctuations, I’ve learned the best way to grow a business is to stay focused and stick to your business plan, while proactively capitalizing on the opportunities that present themselves during times of disruption. I hope you find this issue of The Bridge helpful as you seek innovative ways to prudently grow your business during economic uncertainties or disruptions.
communication to Oak Street, does not create a relationship of any kind between you and Oak Street.
©2022 by Oak Street Funding LLC. All rights reserved. Any duplication without prior written permission is strictly prohibited.
2
Rick Dennen
Founder, President & CEO
FEATURES 4-5
Industry News
How to Win an Agency Acquisition
10
Acqui-Hire
INSURANCE
6
14 18
CPA
Automation in Accounting
Building the Next Generation of Leaders
22
Effectively Evaluating RIA M&A Opportunities RIA
26
Three P’s of Business Cyber Security
30
Get Your Deal Over the Finish Line
3
:Industry News
The pandemic has changed how many people think about work. As a result, a surge of
Businesses continue to struggle with labor and rising costs amid
people left their jobs in the spring of 2021 in a
global disruption. To ensure your organization remains resilient in
movement coined The Great Resignation. This
the face of emergencies, make sure your continuity plan covers
movement does not include those who have lost
these critical functions:
jobs due to the pandemic. Rather, it is fueled by long-term dissatisfaction, safety concerns, and government stimulus aid. We are now in a period of rethinking the way humans and businesses operate simultaneously. Incoming talent operate
1. Key operations and responsibilities: Which functions are absolutely critical to the business? Have key employees in the organization cross-trained others to take over their duties if necessary?
with different values, led by Gen-Zers, who
2. Vendors/suppliers: What suppliers do you leverage? What vendors
have graduated college virtually, only to enter
are you currently in communication with?
a virtual and remote work force. How will your organization respond?
3. Equipment: What computer systems are reliable if all else fails? Is there a backup to the backup?
Hybrid Work Weeks and Supporting Your Business In the midst of The Great Resignation, employers are revisiting their employee engagement strategies. Work-life balance has emerged as a primary concern of the modern workforce. Organizations have experimented with various hybrid models, mixing remote and in-person workdays. Employees have more time to develop and engage in their personal lives, which brings reinvigorating energy and dedication to work and the company. As employees feel more secure in their personal lives, productivity increases as the bond between the company and the individual is strengthened.
4
In the Face of AI: Is Your Business Ready?
Inflation: How to Respond and Remain Competitive
Businesses are turning to artificial intelligence (AI) as a
Inflation rates are at historically high levels and
means of scalability, primarily through automation efforts
many business owners are faced with raising fees to
in these areas:
accommodate increased costs. Here are some best
1. Ease of connection: The easier your customer process is, the more conversions and business you will receive.
retaining customers: 1. Communicate: Frequently communicate with employees
2. Increased employee bandwidth: Introducing
so they are prepared to answer questions.
innovative technology frees up time for your employees to expand their responsibilities.
2. Pricing Adjustments: Use the price-waterfall method to
3. Refined internal data system: With more information accessible to you and your team, you can make more informed decisions.
practices to raise fees while remaining competitive and
adjust your pricing. Avoid applying a general price increase to all products and services. 3. Analyze: Be flexible and willing to adjust as you receive new insights.
Crypto Payments: Should You Add it to Your Model? Cryptocurrency is becoming mainstream in various forms, such as NonFungible Tokens (NFT), of which the most commonly known token is Bitcoin. The NFT market is booming and expected to surpass $26 billion by the end of 2022. How will this impact customer payments? To be able to accept cryptocurrency payments, you will need to invest in blockchain technology. There are many unknowns regarding NFT payments, but as cryptocurrency gains traction, you may need to consider investing in the technology necessary to remain relevant in the industry.
5
HOW TO WIN AN AGENCY ACQUISITION If you are considering an agency acquisition but
agencies that aren’t a good fit. Consider the seller’s
have paused plans due to rising interest rates and
carrier contracts, location, and client books. Will
multiples, do not despair. Even with the expected
the acquisition contribute to your long-term value
rate increases, capital is stiill readily available and
plan? Knowing what you want ahead of time will
relatively affordable. You may not have the highest
make it easier to quickly identify a good acquisition
offer, but the best acquisition deals are based on fit
opportunity.
and price. With these tips, you can win a profitable
During acquisition
acquisition that will bring you long-terrm success.
Pre-acquisition
Acquisition negotiations are both art and science. The science involves structuring the deal to
Whether you are actively looking to buy or want
account for how much equity to put toward the
to be prepared should the opportunity arise,
deal, how much of an earn out or seller note will
there are steps you can take before you begin the
be determined, and the right amount of third-party
acquisition process to ensure success. Not every
debt. Successful acquirers have mastered the art
agency looking to sell will benefit your agency.
of evaluating acquisitions based on agreed-upon
Keep your strategic focus top of mind and only
principles and walking away from transactions
pursue transactions that are right for your key
if they spot any deal-breakers. Turning down an
objectives, so you don’t waste time investigating
acquisition may seem counter to ‘winning’ an
6
rumor mill and lead to anxiety. Keep the employees of both agencies informed and involved in the process as much as possible. Being open and direct with employees will encourage them and their clients to stay with the agency after the acquisition.
Post-acquisition The best acquisition will fail if the two agencies do not integrate effectively and fall apart shortly after the transaction. To prevent this from happening, develop standardized processes that consider business operations and focus on culture and people. Will the new employees have to adapt to new processes and culture, or will there be a mix of the two agencies’ cultures? Regardless, leaders must actively cultivate a culture that promotes inclusion and growth of every employee in the new organization.
Conclusion The market for acquisitions remains high despite the increasing rates and threats of geopolitical turmoil and agency owners planning to grow by acquisition should acquisition, but the goal is quality, not quantity. It
continue with their strategy. Winning an acquisition
is important to consider why the seller is leaving,
requires diligence and dedication before, during, and
how long they plan to stay with the agency after
after an acquisition. Start with a strategic focus and
selling, and who in the agency holds the key
commit to your plan. During the acquisition, stick
relationships with clients. These considerations
to your principles, be disciplined, and communicate
during the acquisition will help you determine if
frequently with employees and clients. After the
the seller’s agency will remain profitable after the
acquisition, follow the integration plan and cultivate a
acquisition.
positive company culture. With these tips in mind, you
Stick with a disciplined process to evaluate the attractiveness of a potential acquisition and don’t
will be off to a great start to winning an acquisition in 2022.
be afraid to step away from any transaction that is less than ideal. The right acquisition will happen if you stay committed to the process and your principles. During this time, frequent communication with both teams is vital. Closed door meetings fuel the
How do you build company culture with newly acquired businesses? Click to read now! 7
INSURANCE EXCLUSIVE
KEYS TO GROW YOUR AGENCY Insurance industry M&A activity is still robust and purchase price multiples are at an all-time high. Now, more than ever, is the time to grow and even sell your agency.
Scott Stars Vice President of Strategic Markets
•
Sales leader for nearly a decade
•
Experience in providing more than $120 million in insurance industry loans
•
Successfully led sales organizations in highly competitive environments and has developed growth strategies specifically for insurance businesses
8
Are you looking to grow but aren’t sure which channels are the right fit? Listen to Scott Stars discuss how he has seen agencies like yours grow.
Scott Stars Vice President of Strategic Markets
317-428-3841
scott.stars@ oakstreetfunding.com
oakstreetfunding.com
9
What is acqui-hire? Acqui-hire may be a new term to many business owners, but it’s becoming increasingly wellknown as the struggles to hire show no signs of letting up during the tightest labor market most of us have experienced. Acqui-hire is a quick way to describe the concept of companies acquiring other companies for the primary purpose of adding talent. In the wake of the pandemic and a fast-growing economy, employers of all types find it increasingly difficult to fill open positions. While some owners have dramatically increased pay rates in a desperate search for more talent, others have stepped back and taken the more strategic approach of buying up other companies. Employers eager to staff up discovered it was often faster and easier to simply buy another business and bring its employees into their team.
What makes acqui-hire faster?
with new hires. Many business owners have experienced the frustration of going through the
Employers know finding new employees
entire hiring process, only to have a candidate
invariably takes more time and effort than
reject the job offer or receive an incentive to stay
expected, and that’s especially true in the current
at their present job. Because acqui-hiring involves
employment environment. Each prospective
bringing on a known group of employees who
employee must go through the application
are accustomed to working with each other, and
process, participate in one or more interviews,
because the process typically takes less time,
accept the position, give notice to their current
there’s less risk a failed hire will cause delays.
employer, and be onboarded into their new role. If
To further reduce the risk of acqui-hire failure,
you’re planning to hire several people at once, the
consult with your legal counsel to draft non-
timeline is likely to be even longer. By contrast, an
compete and retention contracts for the new
acquisition may be accomplished in a couple of
employees. This will ensure they stay with your
months, and you won’t be forced to go through all
company and bring their clients with them.
the separate steps with each new employee.
Acqui-hire can be less risky This approach can also reduce the risk associated
10
A Caveat: Culture Matters Successfully using acqui-hire involves much more than simply finding sufficient headcount to
Using acquisitions to conquer today’s frustrating job market meet your objectives. Bringing a group of new
capital on hand or may not want to tie up a
employees aboard isn’t likely to succeed if your
large portion of your working capital. Consider
company’s culture and values are drastically
partnering with a specialty lender like Oak Street
different from those of the company you’re
Funding® to tap into the future income you can
buying. For example, you may prefer a traditional,
expect to gain through your acquisition.
top-down management style, but if the company you buy gives its employees more autonomy in how they choose to do their work, there’s a greater likelihood your new employees won’t stick around. Do your due diligence to ensure your cultures and strategies align before getting serious about making a deal.
What are the tax and legal implications of an acqui-hire? Click to read now!
How can you fund acqui-hire? If the acqui-hire approach is right for your business, you’ll likely need access to additional capital before proceeding. Even if your business is financially healthy, you may not have sufficient
11
INSURANCE EXCLUSIVE
WHAT’S NEXT IN INSURANCE?
Digital Transformation Modern customers much prefer buying insurance online than over the phone. How can you meet customers where they shop? Adopting technologies is the obvious answer, but is much easier said than done – How do you start to go about your digital transformation? 1. Identify functions in your processes that could be streamlined or digitized. 2. Is there existing software in your lineup to onboard? If not, innovate or research. 3. Raise funding to invest in the necessary technology and improve your customers’ experience.
12
New Insurance Models Diversifying risk is the name of the game. How can you expand your revenue margins and manage risk across your portfolio? Identify new niches to target and expand your audience. To minimize risk, pick a niche your agency has expertise in. This expertise will lend itself to the underwriting process and new credit profile, while supporting your agency’s growth.
Talent Retention The Great Resignation and subsequent employee concerns pose serious threats to your agency. If you want to retain your talent, you must keep them attracted to your business. To do this, research modern workforce trends and poll your employees to find out what is most important to them. Flexibility in work hours and location, shared purpose, and inclusion are more important to modern workers than an agency’s history.
13
AUTOMATION IN ACCOUNTING No doubt some ancient bookkeeper reacted to the
more time to focus on strategic roles such as risk
invention of the abacus by complaining it would
management and auditing.
disrupt their ability to perform tasks and eliminate their job. The history of accounting has been
Protecting your value
one of constant technological innovations many
Given the inevitability of a continued increase
believed would upend the profession. Adjustment
of automation in accounting—and the exciting
to change can be hard. Yet most innovations have
applications of artificial intelligence (AI)—it’s
empowered accountants, improved their efficiency,
a great time for CPAs to examine what their
and enhanced their value to clients.
practices can do to remain competitive and protect their clients. As technology ages, it becomes
Current accounting automation advances are no
more susceptible to cyberattacks, so keeping
different. While it may provoke anxiety among
technology up to date with the latest protections
some practitioners, successful CPAs recognize
is crucial in protecting your assets and value as
automation’s potential to transform both the
a trusted partner. Plus, because other practices
profession and their firms. Many CPAs actually
are successfully deploying new automation and
embrace new technology because it replaces
shifting their business approaches, failing to
manual tasks often perceived as drudgery (like
embrace innovation could leave you falling behind
recordkeeping and tax preparation) and allows
the competition.
14
value work. That can lead to substantial increases in margins. In addition, you’ll be able to respond to client requests more quickly, while improving your operating efficiency ratio. The American Institute of Certified Public Accountants (AICPA) offers many resources focused on digital optimization for the industry.
Confident counsel Automation also improves your ability to make decisions and issue recommendations to clients. Using technology to leverage and analyze today’s wealth of data can improve both your access to insight and your confidence in applying that insight to client needs. That makes you a more valuable strategic partner as your clients pursue growth opportunities.
Investments pay off Accounting professionals have long faced the dilemma of whether to invest in innovations, whether that was new adding machines for clerks a century
Automation is a leveler
ago or bringing AI capabilities to today’s practices. By continuing to adapt your practice to changes in
A key advantage of automation is its ability to
automation, you’ll protect client relationships and their
level the competitive field. The ever-shrinking
most important assets.
cost of innovations allows smaller CPA practices to offer sophisticated services that were once the province of industry giants. Those services can be especially helpful when it comes to client retention. As your clients’ businesses become more complex, they’ll appreciate knowing the professionals they already trust can offer the capabilities they need.
How is digital disruption impacting your business? Click to read now!
Faster, more efficient One of the biggest benefits offered by automation is the amount of time it can save. When you and your team use technology to automate previously time-consuming tasks, you can use more of your day to focus on higher-
15
CPA EXCLUSIVE
HOW TO SELL YOUR CPA FIRM The spring tax season has come to a close and many principals are looking to leave or sell. How do you go about selling your practice?
Bruce Warren Vice President of Strategic Markets
• 30+ years of commercial lender experience • Nine years of professional practice lending experience • National presence in the CPA and RIA lending spaces
16
What should you value when selling your firm? Listen to Bruce Warren discuss the steps to take to sell, and what mistakes to avoid.
Bruce Warren Vice President of Strategic Markets
317-428-3829
bruce.warren@ oakstreetfunding.com
oakstreetfunding.com
17
As some business owners approach retirement,
the knowledge they’ll need to serve in those
they begin to wonder where they will find the
roles. Don’t be afraid to begin teaching the
next generation of leaders. They may look at
junior employees practice management skills in
their current employees and conclude they
preparation to take over the business instead
don’t have the expertise or motivation it takes
of the senior individual. In the end, your client
to run a business successfully. You can leave it
relationships are the most important part of
to chance, or you can begin to develop the next
your business, and it is easier to teach technical
generation of leaders today.
skills than people skills. If you aren’t sure where
Identifying the next generation of leaders
to begin, the American Institute of Certified Public Accountants (AICPA) offers training and resources for current and future leaders
Proper planning allows you to identify those
on a wide variety of topics, including practice
who will play a leadership role in the future of
management.
your business and also where you may have employees who know the business inside and
Don’t assume you know what employees want
out but don’t have the leadership skills or client-
Many business owners assume they know
first approach that you want in a leader. On the
what their employees want from their jobs
other hand, you may have junior employees
and careers. They’re likely to be surprised
who are hardworkers and dedicated to building
when their employees move to a competitor or
client relationships but lack experience. Once
change careers. Team members like to know
you’ve identified your future leaders, you’ll
what role they’ll play in your current and long-
need to help them develop the skills and gain
term strategic business plan. Those who see
gaps you need to fill. You may have experienced
18
BUILDING THE NEXT GENERATION OF LEADERS their part as integral are less likely to leave for
needs to take over the business. There are a wide
a competitor, so it’s important to talk with your
variety of resources available online to help you
employees regularly to understand their career
create a tracker for your employees’ development.
goals and level of satisfaction with their positions. their goals and make them feel like significant
Creating a strong pool of future leaders
contributors to the company’s success, you’ll
Business owners who take the time to address
strengthen their loyalty.
leadership development early on create a strong
When you give them the time to develop to reach
Make data capture part of leadership development
pool of candidates who have the right skills to manage the business. When you dedicate time to identifying and training your successors, you can
Adding a data-capturing element plays a critical
be sure your business will continue to thrive after
role in leadership development. By quantifying
your retirement.
and tracking your team members’ skill and knowledge levels, you can immediately identify gaps you need to address. To determine the data you need to measure and manage, start with the job skills and leadership characteristics you view as most important to your business. Address categories such as experience in practice management, strengths, weaknesses, and career
Do you have the keys for a future ready, high performing business? Click to watch the webinar now!
goals, so you can quickly identify the training, mentoring, and experiences each team member
19
CPA EXCLUSIVE
WHAT’S NEXT IN ACCOUNTING?
Social Media The digital landscape continues to expand as virtual replaces in-person connections. Accounting firms are turning to social media to create personal relationships with potential clients. Accounting Today reports that accounting firms of all sizes are using different social platforms. Find where your audience spends their time and build an awareness of and connection to your firm.
20
Blockchain Technology Blockchain technology, also known as Distributed Ledger Technology (DLT), allows users to share and store valuable data in a secure way and with permanent record. It is a promising technology that helps reduce risk and fraud and enables greater transparency in a revolutionary way. Blockchain technology is most commonly associated with cryptocurrency, but its uses can extend to the storage of any type of data such as real estate transactions and regulatory compliance and audit files. The extremely secure nature of blockchain technology makes it ideal for storing sensitive client information.
Secure Technology Do you have a plan in case of a cyber attack? Protect your business and your clients with the 3 P’s: 1. Protect 2. Plan 3. Practice Read more on page 26.
21
EFFECTIVELY EVALUATING
RIA M&A OPPORTUNITIES According to Devoe & Company, RIA mergers
opportunity may not be the best fit. If you’re
and acquisitions set new records in 2021 for the
currently contemplating a merger or acquisition
eighth consecutive year and 2022 is on track to
or believe a transaction may be in your firm’s
be another record-setting year. There are several
foreseeable future, it’s wise to evaluate the factors
factors behind that strength. One of the biggest
that lead to success…or disappointment.
1
is the sheer number of investment professionals who are making the transition to retirement. This
Know Thyself
disruption of the RIA industry provides lots of
Before you can begin to identify and evaluate
opportunities for mergers and acquisitions.
targets for a merger or acquisition, you need a clear sense of your objectives and business values.
The best mergers and acquisitions provide the
It may add a little time, but developing a written
proverbial win-win for everyone involved. Because
plan that’s similar to a business plan can help you
there are so many M&A opportunities, it is vital to
identify your objectives, factors to consider, and
carefully evaluate opportunities to make sure they
what you see as non-negotiable items. Can you
are right for your firm. The first
articulate your company’s culture and what you define as success? Planning this way will make
1 https://static1.squarespace.com/static/5410ec1be4b0b9bdbd0cc342/t/61df2f79f
22
it easier for you to evaluate and narrow potential targets.
Professional appraisers generally use a combination of methods that focus on market multiples of revenue, assets under management, and cash flow. Even though valuations are higher than they’ve ever been, the range of valuations is wider than it’s ever been. A lot depends on the capabilities of both the buyer and seller. Firms with aggressive growth and profits are typically valued higher than firms with steady growth. While these stable firms may not appeal to the buyers that drive up valuations, they have a lot to offer other stable firms who are looking to expand their talent or client offerings.
Find Partners Finally, you want to have your team in place. After all, you don’t want to miss out on a great acquisition because you had to hunt for an attorney or capital when another bidder was ready. Line up your legal and financial team before you begin looking for an
Culture Matters Once you’ve determined the types of firms that
acquisition or merger. If you are considering your first deal, considering hiring a consultant to guide you through the process.
would be a good fit, evaluate each opportunity against those factors. Don’t dismiss the importance of business culture, because buying a firm with an incompatible culture can be a recipe for disaster. If you plan to combine the operations of both firms into a single office, you’ll want to be sure the people will be compatible too.
Consider Valuation Another critical element in successful transactions is how the deal is valued. If you’re the acquirer, you obviously want to pay as little as possible, while sellers are eager to maximize the value of their firms. The best approach may be to agree to have an independent third
Click to watch our Underwriting and Sales teams discuss strategic growth through acquisition.
party develop the valuation that will be used.
23
RIA EXCLUSIVE
KEYS TO A SUCCESSFUL SUCCESSION Are you looking to retire in the next 5-10 years? Don’t leave your firm and clients without a succession plan!
Susie McEuen Vice President of Strategic Markets
•
Has worked at Oak Street Funding since 2017
•
Specializes in financial needs of advisors and RIAs
•
Former Vice President and subject matter expert of Donor Advised Funds at Renaissance Philanthropic Solutions Group (RenPSG)
24
Avoid the consequences of not having a plan by following these tips from Susie McEuen.
Susie McEuen Vice President of Strategic Markets
317-814-2669
susanne.mceuen@ oakstreetfunding.com
oakstreetfunding.com
25
Protect Plan Practice Since Russia invaded Ukraine in late February,
you add slices of cheese, you’ll have a solid piece
cybercrime is on the rise. CrowdStrike CEO George
of cheese with no holes. In the same way, layers
Kurtz says while the world is distracted by the war,
of defense are best when combined with other
cybercriminals are taking the opportunity to steal
layers to protect the inner circle of
more money. This increase in cybercrime may leave
your most important assets.
1
many business owners wondering what they can do to prevent cyberattacks. Fortunately, no matter the size of your business, there are three strategies you can implement to defend against cyberattacks— protect, plan, and practice.
Protect
Plan Once you have determined what is most
The first step is to determine what is most vital
important, develop a plan that details how to
to your business and put controls around those
handle cyberattacks, and partner with experts in
assets. For example, in your organization, financial
cyber security. How will you react if a third-party
information or client data might be the most crucial
software you rely on succumbs to a cyberattack?
aspect of your business. A hierarchical list of what is
Consider investing in a cyber insurance policy
most important to your organization will give you a
and developing a communication plan to inform
roadmap to building your cyber defenses.
your clients should an attack occur. Having a plan
Make sure you have layers of defense. To illustrate the importance of layers of defense, consider the
before the attack happens will mitigate loss.
Swiss cheese model. One slice of Swiss cheese
Practice
has many holes in it, but if you add another slice of
Practice good hygiene when it comes to cyber
cheese, some of the holes will not overlap. As
security. Some of the best ways to prevent and
1 https://www.cnbc.com/2022/03/15/crowdstrike-ceo-cyber-crime-upas-hackers-use-ukraine-war-as-distraction.html
26
THREE P’S CYBERSECURITY
OF
combat cyberattacks are through dual controls,
Awareness
3rd-party vetting, and awareness.
The final aspect to practice is awareness. There
Dual Controls One way cybercriminals target businesses is through email compromise. For example, the hacker, who impersonates a trusted person, sends an email to an employee that reads, “I’m away from my desk right now. Please wire $10,000 to this account right away.” An unaware employee could wire the money without a moment’s hesitation. However, with dual controls requiring two individuals to sign off on a transfer, there is an increased chance the business will not succumb to the fraudulent wire hack.
Third-Party Vetting Your business likely depends on a large number of
are many training programs available to help your employees learn to identify threats. A regular cybersecurity training program will help employees strengthen their awareness of potential threats. Help your clients remain aware of their own vulnerabilities through education and frequent reminders.
Conclusion There are a lot of issues facing businesses today, and it can be challenging to prioritize cyber security. However, no one managing a business should avoid addressing this issue and topic. Fortunately, adherence to the three Ps will increase your chance of defending your company against cybercrimes.
third-party software and technology platforms. Do they value cybersecurity as much as you do? Before signing a contract with a new technology or software company, carefully evaluate their security protocols. If they were to succumb to a breach, what measures will they take to notify you and protect your data? Find the companies with the highest security
How do you protect against cyber attacks? Click to watch the webinar now!
measures to entrust with your clients’ data.
27
RIA EXCLUSIVE
WHAT’S NEXT FOR ADVISORS?
Changing Demographics of Advisors The long-anticipated massive wealth transfer is underway as trillions of dollars pass from Baby Boomers to their children. For some advisors, that transfer comes with a loss of AUM, as new asset owners may not see the same value in advisors as their parents did. RIAs who develop relationships with their current clients’ children are more likely to successfully combat the loss of AUM and retain those assets. A digital approach, through social media and enhanced technology, is the best way to connect with younger generations.
28
Number of RIAs Many advisors are breaking away to operate their own firms. This trend comes as work-life balance emerges as a modern workforce value. Independent firms allow more flexibility in work locations and hours, as well as control over services. Another factor influencing the resurgence of breakaway advisors is automation. Look to this trend throughout the year to keep your firm competitive and retain talent.
Record M&A Activity M&A activity in the RIA space increased by 50% in 2021 and private equity (PE) is responsible for a majority of those transactions. PE firms are on the hunt for the next unicorn in the WealthTech arena, reinforcing the need for digital transformation of RIA firms. As a result, private equity is increasingly more involved with M&A transactions and is likely to only get more involved.
29
Processing Following execution of a term sheet and deposit, all documentation required for a loan would be submitted through our secure MyStreetTM loan management system.
Application You have the option of completing an online or paper application, and submitting initial documentation to assess whether a term sheet can be issued.
Assessment A dedicated Loan Officer will meet with you to discuss your unique business needs and ensure all your questions are answered. If it seems we can help, you would then complete a loan application. 30
Funding Congratulations! Funds are dispersed and the deal is complete. A relationship with your loan servicer is maintained throughout the life of the loan.
Closing All loan documents are reviewed by both parties. Final copies are accepted and signed.
Underwriting All relevant documents and information are analyzed by Underwriting, and any outstanding questions are addressed.
31
Capital. Partnership. Resources.
a first financial bank company
You’ve worked hard to build your business. Really hard. As you continue to move forward, doesn’t it make sense to work with an experienced lending partner with the capital you need to support your business today, and your successes tomorrow?
Oak Street Funding — we’ll get you there. Call us at 844-343-1404 or visit oakstreetfunding.com to learn more.