Ep 398: Building A $2.5B AUM Advisory Enterprise Under The Umbrella Of A National CPA Firm With Eric Wulff
Aug 13, 2024
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Eric Wulff, CEO of Marcum Wealth, oversees $2.5 billion in assets for 2,700 households. He reveals how leveraging relationships with CPAs drives referrals, emphasizing a 'give to get' strategy. Wulff discusses the integration of tax advisory into financial planning and the value of standardized services across locations. He also explains their unique approach to client acquisition, converting prospects by presenting detailed plans upfront, all while balancing growth with a targeted focus on mid-career advisors.
Eric Wulff emphasizes the importance of building strong relationships with CPAs to facilitate valuable referral networks for financial planning services.
Marcum Wealth standardizes its financial planning processes through a centralized team to ensure consistent client experiences across all offices.
The firm’s 'give to get' philosophy fosters trust and encourages CPAs to refer clients, bridging the gap between accounting and financial advising.
Targeting younger advisors within the CPA framework enables Marcum Wealth to enhance practice capabilities and drive sustainable growth through strategic acquisitions.
Deep dives
Building Mutually Beneficial Relationships
Eric Wolf emphasizes the significance of fostering strong connections between financial advisors and accountants to facilitate referrals. Establishing trust is essential for CPAs to feel comfortable directing their clients to financial planners. By taking a 'give to get' approach, Markham Wealth demonstrates value to both CPAs and their clients, ensuring they remain a priority for financial planning needs. This collaborative relationship, particularly in exit planning, allows CPAs to maintain long-lasting ties with business owners as they navigate the sale of their companies.
Systematized Planning Process
Markham Wealth implements a centralized financial planning team to standardize processes across multiple offices, promoting consistency and efficiency. This model enables advisors to focus more on client interactions and relationship-building rather than administrative tasks. Presenting financial plans to prospects before they become clients serves as a demonstration of value, encouraging them to engage in a long-term planning relationship. This systematization helps ensure that all clients receive the same high-quality experience, regardless of their advisor.
Challenges of CPA and RIA Integration
Wolf highlights the fundamental differences between CPA firms and registered investment advisors (RIAs) regarding business models and client relationships. CPAs often work on a billable hour basis, while RIAs benefit from long-term, recurring revenue streams based on client relationships. This distinction drives the need for a different approach to client management, requiring advisors to focus on delivering value over time rather than immediate transactions. The 'give to get' philosophy helps bridge this gap and encourages CPAs to refer clients to financial advisors.
Navigating Business Growth and Acquisitions
Markham Wealth's growth strategy includes targeting younger advisors wanting to develop their practices within the CPA framework instead of acquiring retiring owners. This focus on building relationships and enhancing practice capabilities demonstrates a commitment to ongoing development rather than simply obtaining client portfolios. Wolf articulates the importance of understanding local markets and client needs when considering acquisitions. Growth through capitalizing on existing accounting relationships allows Markham Wealth to create a strong foundation for integrated advisory services.
Leveraging Technology and Planning Frameworks
Wolf discusses the use of advanced technology tools, such as MoneyGuide Pro and a unique framework, to streamline financial planning processes at Markham Wealth. By linking investment models to financial plans, the firm facilitates customized yet standardized planning experiences. The firm's centralized planning team ensures that every advisor has access to consistent data and outcomes, allowing for clear communication with clients. This innovative integration of technology significantly enhances client engagement by providing them with relatable financial forecasts.
The Role of Referrals in Business Development
A significant portion of Markham Wealth's growth comes from referrals generated through the trust established among clients and CPAs. Wolf explains that successfully integrating advisory services within CPA practices enables financial planners to provide valuable insights to clients, enhancing their overall experience. By actively engaging with CPA partners, advisors can better position themselves as trusted resources for financial planning. The robust referral network developed through these efforts often leads to new client opportunities and further solidifies existing relationships.
Success Defined by Client Value
Wolf believes that success is ultimately defined by the value provided to clients and their respect for the work done. He stresses the importance of doing what's right for clients over merely generating profit, as a strong client-centric approach leads to long-term sustainability. The firm's philosophy reinforces that maintaining quality relationships will naturally drive growth. By ensuring that client needs are prioritized, Markham Wealth has successfully built a thriving practice based on referrals and sustained engagement.
Eric Wulff is the CEO of Marcum Wealth, an RIA based out of Cleveland that oversees $2.5 billion in assets under management for approximately 2,700 households. Eric has uniquely developed Marcum Wealth into a multi-billion-dollar firm under the umbrella of a national accounting firm, largely by fostering mutually beneficial relationships with internal CPAs to secure referrals of their accounting clients to his financial planning business. This strategy has effectively integrated and leveraged the firm's existing services to expand its client base and enhance its financial planning division.
Listen in as Eric shares his strategic approach to generating internal referrals at his firm, using a "give to get" philosophy with CPAs to ensure his advisors are top of mind for financial planning referrals, especially through exit planning services that help maintain CPA-client relationships beyond traditional business needs. He also explains how his firm standardizes financial planning across national offices through a centralized team, the effectiveness of presenting detailed financial plans to prospects before they commit, and his targeted acquisition strategy focusing on growth-minded mid-career advisors.
What Marcum Wealth Looks Like Today [6:35] Using A Team-Based Approach To Building Financial Plans [16:10] Linking Marcum Wealth's Planning Process To Its Asset Allocation Frameworks [28:44] Converting Prospects Into Clients Through The Plan Delivery Process [33:06] How Marcum Wealth Generates Referrals From Its Attached CPA Firm [46:10] Dividing Advisory Teams By Geography And Client Segments [57:43] Marcum Wealth's Strategic Approach To Acquisitions [1:04:21] What Surprised Eric The Most Building An Advisory Business [1:15:40] The Low Point On Eric's Journey [1:17:34] What Eric Would Tell His Younger Self [1:22:58] Eric's Advice For Younger Advisors [1:24:15] What Success Means To Eric [1:27:25]
The following contains the thoughts and opinions of Eric Wulff, CEO, of Marcum Wealth, LLC. Marcum Wealth is an investment adviser registered with the United States Securities and Exchange Commission. Registration does not imply a certain level of skill or training. The statements herein are intended as brand and general educational and informational content only, and no viewer should construe any statements as an offer of Marcum Wealth’s advisory services. Viewers are encouraged to discuss the content of this broadcast with, and direct any questions to, the financial professional of their choosing.
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