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Fueling Inorganic Growth Strategies for Breakaway Advisors


How LibertyFi helped Elk River Wealth Management add $2.75 million in enterprise value through two acquisitions within six months of breaking away

Launched in March 2020, Elk River Wealth Management is a breakaway RIA with aggressive targets to quickly scale both their assets under management and geographic footprint.  

Determined to hit the ground running, the leadership team and their equity and operating partners at Wealth Advisors Growth Network (WAGN) wanted to start acquiring companies quickly, while avoiding the cash flow problems that can plague breakaways.

On the advice of WAGN founders John Phoenix and Jay Hummel, Elk River turned to LibertyFi, which has played a pivotal role in the firm’s early growth.


Positioning Elk River for Aggressive Growth

To help Elk River achieve its growth targets, LibertyFi focused on several key areas:

  • Focusing Advisors on Client Service
    From the very start, LibertyFi managed the Envestnet platform, partnered with the custodian and the ops team, ran proposals, and assisted with reporting, allowing advisors to focus on their clients. LibertyFi also trained advisors how to work efficiently with the tech over the first six months.
  • Supporting an Inorganic Growth Strategy
    LibertyFi manages the firm’s operations, billing, and conversion processes. This provides the firm with a great advantage as it was able to start executing its growth strategy within weeks of launching.
  • Increasing Working Capital
    While breakaways may face cash flow issues within their first few months, LibertyFi immediately implemented an off-cycle, monthly billing process, which kept Elk River cash-flow positive as it quickly built working capital. Clients also responded positively to the transparent billing cycle.
  • Creating Scalable Processes
    With LibertyFi’s experience creating scalable processes, Elk River doesn't have to worry about how to convert their business or merge with newly acquired companies. Elk River trusts LibertyFi to quickly onboard new firms.

Results

Because of its partnership with LibertyFi, Elk River has achieved these results:

Next Steps

As Elk River continues to execute its growth strategy, LibertyFi is a strategic partner helping the firm succeed.

“Our strategy is to continue acquiring teams. LibertyFi will be there with us because they give us the ability to scale the practice. With LibertyFi, we can add new teams seamlessly,” says Hummel.

Conclusion

As a result of partnering with LibertyFi, Elk River is positioned to capitalize on business opportunities quickly and confidently.

“During negotiations with possible acquisitions, I never have any concerns about operations or the transition,” says Hummel. “With LibertyFi’s expertise, growing Elk River is so much easier.”

Read the full case study here.