When it comes to finding a solid investment advisory firm, there are a lot of different things you need to be aware of and on the lookout for. The reality is that every board has its own criteria for what makes them ideal, and it is up to you to best determine whether those criteria match your own.
If you are looking to find an investment advisory firm, there are a few things you’ll want to make a point of emphasizing in your search, the first of which being hard-lived experience in the field. While every other aspect of an advisor is important, they all come second to a firm that has been in the game long enough to see how it’s played. Lived experience is what turns every other aspect of a firm from the “theoretical” to the “applicable”.
As an example, the investors at Macdonald Ventures have been in the game for nearly five years, and have been involved in over $400 million worth of company exits. As a result, not only do these advisors know what they are doing with the money, but they know the best ways to make more of it. This is only possible due to the “in the trenches” experience that they’ve acquired over the years.
However, just because a company has experience doesn’t automatically mean they are worth your time or share the same values as you. In addition to that, you’ll want to gauge them for several different points to better establish confidence in what they offer for you and your company.
These are:
- Knowing Their Traits
- Speaking With A Consultant
- Speak With Their Advisors
- Perform Onsite Visits
#1. Knowing Their Traits
The first thing you’ll want to do is spend some time thinking of exactly what traits you are looking for when it comes to an advisory firm. From there, once you’ve created a list of characteristics you need, take the time to research the various firms out there and see what they say about themselves. While some will often be fairly common, others will be specific to your particular practice. Those are the ones you want to focus the most on.
#2. Speak With A Consultant
Once you’ve made your list of firms that you “think” will share the same values and tenets as you, it’s time to start putting that to the test by speaking with a consultant from said firm. By speaking to a specialist advisor, you can start to see, in real-time, what that company is about and how you’d fit in with them.
#3. Speak With Their Advisors
Next, you’ll want to speak with the firm’s advisors. Not only should you talk with the advisors currently on board, but also the ones that have only recently left. By having that information (especially from those that have just left) you can more effectively understand exactly what the firm is about, outside of all of the pomp and circumstance that they may claim to the public.
#4. Perform Onsite Visits
Lastly, you’ll need to see what the actual work environment looks like. Arrange for an onsite tour of the location, meeting the key employees and senior members of leadership there. This will give you a picture of what you can expect.
