Ep 387: Merging A Fast-Growth Firm Into A Much Larger One To Get The Operations Monkeys Off Your Back with Jenny Martella
May 28, 2024
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Jenny Martella shares insights on growing her firm from $19M to $250M in AUM in 7 years, navigating merger with Modera Wealth, challenges of scaling, preserving brand identity, effective client communication, and personal growth post-merger.
Investing in a professionally designed website helped grow the firm's assets to $250 million in 7 years.
Operational responsibilities can be burdensome, leading to the need for a merger with a larger firm.
The negotiation process with Modera Wealth showcased the importance of values alignment and strategic decision-making.
Deep dives
Jenny's Successful Growth Strategy
Jenny and her partner successfully grew their firm from $19 million to $250 million in assets under management in just seven years. A key factor in their growth was investing in a professionally designed website that showcased their status as a fee-only financial planning firm run by women. Despite the rapid growth, the increasing burden of operational responsibilities showcased the need for additional operational staff.
Challenges and Decision to Merge
As Jenny's firm continued to grow, operational responsibilities such as hiring, compliance, and managing more clients became burdensome. The desire to alleviate these operational challenges and the lack of a viable internal successor led Jenny and her partner to seek a merger with a larger firm. Initially exploring mergers with firms of similar sizes revealed that many wanted Jenny's firm to be their succession plan, leading them to consider merging with a much larger firm like Modera Wealth.
Negotiating the Merger with Modera Wealth
The merger negotiation process involved discussions with various firms, with Modera Wealth emerging as the preferred partner due to their respectful approach and alignment with Jenny and her partner's values. During the negotiation, they opted for a share exchange, becoming partners at Modera. Jenny and Karen secured leadership roles, with Karen being the first woman on Modera's board and Jenny sitting on the financial planning committee, ensuring their influence and contribution within the new entity.
Transitioning to a New Brand and Website: Overcoming Business Challenges
When transitioning from Keatley Wealth Management to Modera, the podcast discusses the challenges faced when the original website, a crucial business tool, was shut down. This sudden change resulted in decreased business generation and the need to explore alternative methods to develop new business. The speakers highlight the emotional impact of losing the established website and the realization that merging with a larger company involves sacrifices and a slower decision-making process, emphasizing the importance of patience and resilience during transitions.
Navigating Role Changes and Client Communication During Mergers
The podcast delves into the complexities of role redefinitions and client communication post-merger. It outlines the difficulties of establishing connections with new partners and clients during a merger, especially amidst external challenges like the pandemic. The speakers share their strategies for effective client communication, emphasizing personalized interactions over impersonal methods to address client concerns. They reflect on the significance of building trust, managing client expectations, and adapting to organizational changes to ensure a smooth transition and maintain client relationships.
Today we're joined by Jenny Martella, Principal and Wealth Manager at Modera Wealth Management, whose unique journey in the financial advisory world saw her and her partner achieving remarkable success in growing their firm from $19 million to $250 million in assets under management within 7 years. Jenny and her previous partner were so successful that they decided to seek a merger with Modera Wealth, a much larger enterprise, so they could focus on their strengths. In this episode, we explore Jenny's strategies for growth, the challenges of operational responsibilities, and the decision-making process behind merging with a larger firm.
Listen in as Jenny discusses the intricacies of the merger process, from exploring potential partners to navigating the transition of clients and brand identity. She also shares lessons about managing change, adapting to new technologies, and finding her place within the larger organization. You'll learn about her methods for effective client communication and maintaining personal inspiration in the face of professional challenges, ideas for preserving brand identity during a merger, and more.
